Gambling, Probabilities, and Odds

Question 3 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

What is the meaning of odds?

Answer

the ratio that represents the extent to which something is probable

the ratio that reflects the chance or likelihood that a particular event will occur

the ratio of the number of favorable outcomes to the number of possible outcomes

the ratio of the probability of an outcome occurring to the probability that the outcome will not occur

Explanation

Odds compare the probability that an event will occur with the probability that it will not occur. For example, if an event has probability 3/5, its odds in favor are (3/5)/(2/5), or 3:2. Choice D gives this ratio; choice C describes probability as favorable outcomes divided by possible outcomes.

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