10
QuizMultiple Choice

Gambling, Probabilities, and Odds — Quiz

Question 10 • Personal Finance

What is the meaning of odds?

Answer
A
the ratio that reflects the chance or likelihood that a particular event will occur
B
the ratio of the probability of an outcome occurring to the probability that the outcome will not occur
C
the ratio of the number of favorable outcomes to the number of possible outcomes
D
the ratio that represents the extent to which something is probable

Explanation

Odds compare the probability that an outcome will occur with the probability that it will not occur. For example, if an event has probability 1/4, its odds in favor are (1/4):(3/4), or 1:3. Choice B states this ratio; choice C describes probability as favorable outcomes divided by possible outcomes.

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