90,2.20,3.25 is it arbitrary odds
Mathematics
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Step-by-step solution
3 stepsLet's check these odds for an arbitrage opportunity, chisomnnabuife.
Convert each odd into its implied probability.
The formula for implied probability (P) from odds (O) is P = 1/O.
- For O₁ = 4.90, P₁ = 1/4.90 ≈ 0.20408
- For O₂ = 2.20, P₂ = 1/2.20 ≈ 0.45455
- For O₃ = 3.25, P₃ = 1/3.25 ≈ 0.30769
Sum the implied probabilities.
Total Probability = P₁ + P₂ + P₃
Total Probability = 0.20408 + 0.45455 + 0.30769
Total Probability ≈ 0.96632Determine if an arbitrage opportunity exists.
An arbitrage opportunity exists if the Total Probability is less than 1.
In this case, 0.96632 is less than 1.Conclusion:
Yes, there is an arbitrage opportunity with these odds. The sum of the implied probabilities is less than 1, meaning you can place bets on all outcomes and guarantee a profit.
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