The Final Four Is Approaching And You Will Be Participating In A Betting Pool With Two Other Friends John And Jane Ea 1 (136.75 KiB) Viewed 26 times
The final four is approaching, and you will be participating in a betting pool with two other friends, John and Jane. Each of the final four teams has a power ranking, and the probability they will win a game is based on their power ranking compared to their opponents. For example, if Blue has a power ranking of 75 and Green has a power ranking of 25, Blue's win probability is % and Green's is %. The bracket, and associated power ranking points is as follows: UCLA (100) a UCLA v Texas winner Texas (200) Champion Florida (50] Florida v Cornell winner Syracuse [100]
For the aforementioned bracket, you, John and Jane each have $100 to use to bet on the different teams. The payout will be based on what is known as “parimutuel betting". You all are putting your money in the pot and whoever of you has bet on the winning team will win the pot. In the event multiple people bet on the winning team, the pot pays out in a pro-rata fashion. So if John and Jane bet $50 on the winner, and you did not bet on the winner, John and Jane each receive $150 and you receive nothing. John and Jane have allocated their $100 in the following fashion: W Team John Jane UCLA $30 $0 Texas $35 $50 Florida $0 $0 Syracuse $35 $50 Given this information, how much do you bet on each team? Bets must be whole numbers and add up to 100. UCLA: Texas: Florida: Syracuse:
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