View the step-by-step solution to:

# The following amounts are bets on horses A, B, C, D, and E to win.

11.1.1. The following amounts are bets on horses A, B, C, D, and E to win.

Horse Amount

A \$600,000

B \$200,000

C \$100,000

D \$75,000

E \$25,000

Total \$1,000,00

608 Bayesian Statistics

Suppose the track wants to take 20% off the top, namely, \$200,000. Determine the payoff for winning with a \$2 bet on each of the five horses. (In this exercise, we do not concern ourselves with "place" and "show.")

Hint: Figure out what would be a fair payoff so that the track does not take any money (that is, the track's take is zero), and then compute 80% of those payoffs.

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents