easy   Probability

Soccer Bets

A release-checked easy problem for training Finance.

Question

You are placing bets on the outcome of a soccer match. Team Alpha has $(2:1)$ odds, meaning you receive $\$3$ if you win, resulting in a profit of $\$2$. Team Beta offers $(3:1)$ odds, while betting on a tie has $(10:1)$ odds. $$$$ Let $A$, $B$, and $C$ represent the minimum whole dollar amounts you bet on Team Alpha, Team Beta, and a tie, respectively. Assuming you want to make the same profit regardless of the game's outcome, how much do you profit? If you determine that betting on this game is not advisable, enter $0$.

Practice focus

This Probability problem is tagged Finance. State the random variables and conditioning information explicitly, then check the result against boundary cases before opening hints or a solution.

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