Page 88 - Probability Demystified
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CHAPTER
Odds and Expectation
Introduction
In this chapter you will learn about two concepts that are often used in
conjunction with probability. They are odds and expectation. Odds are used
most often in gambling games at casinos and racetracks, and in sports betting
and lotteries. Odds make it easier than probabilities to determine payoffs.
Mathematical expectation can be thought of more or less as an average over
the long run. In other words, if you would perform a probability experiment
many times, the expectation would be an average of the outcomes. Also,
expectation can be used to determine the average payoff per game in a gamb-
ling game.
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