Suppose John offers what he believes to be a fair bet as to whether an instructor will or will not give a class quiz tomorrow. He believes there will be a quiz and offers a:b odds. John views this as a fair bet; compute the probability he assigns to a quiz being given and a quiz not being given.

5. Returning to a possible class quiz, Sue believes there will be a quiz and offers 3:2 odds, Torik does not and offers 3:1 odds. The odds Torik is offering are enticing, and you have $200 where you can afford to lose up to $20. Now, one possibility is to bet $20 only with Torik; if there is not a quiz, he wins and keeps your $20. If there is quiz, you win and he owes you $60. But, by hedging, you can bet more without incurring any greater risk. Explain what to do and how much you can earn if there is a quiz.

4. Suppose John offers what he believes to be a fair bet as to whether an instructor will or will not give a class quiz tomorrow. He believes there will be a quiz and offers acb odds. John views this as a fair bet; compute the probability he assigns to a quiz being given and a quiz not being given. 5. Returnng to a possible class quiz, Sue believes there will be a quiz and offers 3:2 odds, Torik does not and offers 3:1 odds. The odds Torik is offering are enticing, and you have $200 where you can afford to lose up to $20. Now, one possibility is to bet $20 only with Torik; if there is not a quiz, he wins and keeps your $20. If there is quiz, you win and he owes you $60. But, by hedging, you can bet more without incurring any greater risk. Explain what to do and how much you can earn if there is a quiz