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If the odds in favor of Fast Leg winning a horse race are 4 to 3 and the first prize is $ 14 comma 000 comma what is the expected value of Fast​ Leg's winnings?

Sagot :

Hyderali230idn

Answer:

The expected value of Fast​ Leg's winnings is $8,000.

Explanation:

The expected value a predicted value calculated by multiplying a value by its probability.

First, we need to calculate the probability of winning Fast leg's horse

Probability = Odd in favor / Total

Where

Adds in favor = 4

Total = 4 + 3 = 7

Placing values in the formula

Probability = 4 / 7

Probability = 0.571429

Now calculate the Expected value of winning

Expected winning value = First Prize x Probability of winning

Where

First prize = $14,000

Probability of winning = 0.571429

Placing values in the formula

Expected winning value = $14,000 x 0.571429

Expected winning value = $8,000

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