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Sarah is contemplating placing a $100 bet in Las Vegas on the Georgia Dawgs winning the college football championship. The payout for a win is
Sarah is contemplating placing a $100 bet in Las Vegas on the Georgia Dawgs winning the college football championship. The payout for a win is $125, while a loss results in no return. Assuming Sarah's utility function for money is risk-neutral, determine the minimum probability of the Dawgs winning that Sarah needs to believe in to make the bet worthwhile. Show your math
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Business Statistics for Contemporary Decision Making
Authors: Ken Black
6th Edition
978-0470409015, 9780470559062, 470409010, 470559063, 978-0470910184
