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Your friend wishes to make a bet with you that his favorite sports team will win their next game. to entice you into making the bet, he offers you 5 to 1 odds; i.e. if he wins, you pay him the amount wagered; but if you win he pays you 5 times the amount wagered. Supposed that you believe that the probability that his team wins is 80%. If your judgement is accurate, who does expected value of the result favor, you or your friend?

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Statistics and Probability, Statistics

Category:- Statistics and Probability
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