Question

. You go to a betting window at a dog track. You give the teller a $15 bet for a dog that pays 5:3 if it wins.

1. How much will the ticket pay when you claim your winnings?

2. When you claim your money from the window, was the money received a profit or a return? Explain.

3. Was the bet odds on, odds against, or even money? Explain.

4. What does the 5:3 payoff odds tell you about the dog?

5. Is this a situation, implied or actual odds?

Answer 1

(there are more than 4 parts, as per policy i am answering first 4 parts)

1.

winning amount = price * (pay odds)

= $15 * (5/3)

= $25

2.

PROFIT

it is profit, since we spent $15 and recieved $25 which is more than the price amount ($15)

3.

the bet was odds against, since odds of paying is given which give odds against wiining of chosen dog

4.

5:3 odds tells that out of 8 races it wins 3 and looses 5