Probability Stated as Odds_CFA考试视频

Odds against E = [1 − PE]PE,if:successful;calculate the bet’s anticipated profit as follows:Win,Lossprobability of 0.167 for beating sales is odds of 1 to 5.

As an AI language model, I can convert probabilities to odds. The odds of an event occurring are the ratio of the probability of the event occurring to the probability of the event not occurring.

For example, if the probability of an event occurring is 0.6, then the probability of the event not occurring is 0.4. The odds of the event occurring are 0.6/0.4, which simplifies to 3/2. Therefore, the odds of the event occurring are 3 to 2.

Similarly, if the probability of an event occurring is 0.25, then the probability of the event not occurring is 0.75. The odds of the event occurring are 0.25/0.75, which simplifies to 1/3. Therefore, the odds of the event occurring are 1 to 3.