Michael is an avid sport gambler and is going to incorporate a new Premier League strategy, which bets on teams that out
Posted: Thu May 19, 2022 7:02 am
Michael is an avid sport gambler and is going to incorporate a
new Premier League strategy, which bets on teams that outperform
expectations when it rains.
Under the strategy, Arsenal (a PL football club) will generate a
35% return if it rains, and only a 5% return if it does not rain
(either way Arsenal is going to
outperform expectations). The other team, Manchester City, will
generate a 20% return if it rains, but a -10% return if it does not
rain. If there is a 30% chance of
rain, what is the correlation between the returns from Arsenal and
Manchester City?
Please don't use excel. Show all steps. Thank you
new Premier League strategy, which bets on teams that outperform
expectations when it rains.
Under the strategy, Arsenal (a PL football club) will generate a
35% return if it rains, and only a 5% return if it does not rain
(either way Arsenal is going to
outperform expectations). The other team, Manchester City, will
generate a 20% return if it rains, but a -10% return if it does not
rain. If there is a 30% chance of
rain, what is the correlation between the returns from Arsenal and
Manchester City?
Please don't use excel. Show all steps. Thank you