When the horse California Chrome won the 140th Kentucky
Derby, a $2 bet on a California Chrome win resulted in a winning ticket worth $7.
a. How much net profit was made from a $2 win bet on California Chrome?
b. What were the payoff odds against a California Chrome win?
c. Based on preliminary wagering before the race, bettors collectively believed that California
Chrome had a 0.228 probability of winning. Assuming that 0.228 was the true probability of a
California Chrome victory, what were the actual odds against his winning?
d. If the payoff odds were the actual odds found in part (c), what would be the worth of a $2 win ticket after the California Chrome win?