Gambling Test

[Kramer]

On a moneyline wager , which of these would you prefer to bet :

(provide suppporting reasoning in your answer)

1. $300 to win $ 100 ( -$300 ) on a favorite with 75% chance of winning

2. $ 150 to win $ 100 ( -$150) on a favorite with 60% chane of winning

3.$100 to win $ 200 on underdog (+ $200 ) with a 33% chance of winning

good luck.

[rmaciasl]

i would take option number nice percetnage of winning and not risking all in a same time

[Kramer]

Originally Posted by rmaciasl

i would take option number nice percetnage of winning and not risking all in a same time

you are wagering one or none of the above ,
all at same time is not an option -lol

[rmaciasl]

no but my question is whats my bankroll for this question?

[Kramer]

Originally Posted by rmaciasl

no but my question is whats my bankroll for this question?

Assume you have enough to wager ,

And $ 100 = 1 unit ,

but the real exercise is
HOW DO YOU CALCULATE YOUR EXPECTED
RETURN ON INVESTMENT..

[JeromeFromSoutheast]

It does not matter... all three scenarios will wind up breaking even.

[rmaciasl]

well i will say it depends , cause in soccer i have seen -700 and bet on it with a 100% of winnign they clear it up 6-0

[OneDogg]

Originally Posted by JeromeFromSoutheast

It does not matter... all three scenarios will wind up breaking even.

Exactly .. basing it on 100 plays

1. you would win 7500 on 75 wins and loose 7500 on 25 losses

2. you would win 6000 on 60 wins but loose 6000 on 40 losses

3. you would win 6600 on 33 wins and loose 6600 on 66 losses ...

So i guess if anything i would go with option number 3 cause at the end u end up havign 1 free bet where you can hope for the best and hopefully come out ahead 200 bux

[Kramer]

WELL THIS DIDNT GO AS PLANNED BUT HERE'S THE RESULT :

In Scenerio A Excpected return = (.75 x 100) (.25 x300) =775 = 0

in scenerio B 60% of time you win $ 100 but but lose $ 150 the other 40%
expected return = .3333 * 200 ( .6666X 100)=0

There's a pattern here..
To calculate the winning % of wins required to break even for moneyline bets use the following formula :

Required win % = amount risked / (amount risked + amount of win)

This number is the win percentage needed to reach the break even point when betting spreads and totals in sports...

[rjb1816]

the first two you will be even, the third you will come out down 100...so i don't know what the answer is

[rjb1816]

Originally Posted by rjb1816

the first two you will be even, the third you will come out down 100...so i don't know what the answer is

i guess none of them