Question: *22. Refer to Case Study 18.2, in which the relationship between betting odds and probability of occurrence is explained. a. Suppose you are offered a

*22. Refer to Case Study 18.2, in which the relationship between betting odds and probability of occurrence is explained.

a. Suppose you are offered a bet on an outcome for which the odds are 2 to 1 and there is no handling fee. For you to have a break-even expected value of zero, what would the probability of the outcome occurring have to be?

*b. Suppose you believe that the probability that your team will win a game is 14. What odds should you be offered in order to place a bet in which you think you have a break-even expected value?

c. Explain what the two possible outcomes would be for the situation in part b, assuming you were offered the break-even odds and bet $1. Show that the expected value would indeed be zero.

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