90,2.20,3.25 is it arbitrary odds

Mathematics

ScanSolve AI Answer

Step-by-step solution

3 steps

Let's check these odds for an arbitrage opportunity, chisomnnabuife.

  1. 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
  2. Sum the implied probabilities.

    Total Probability = P₁ + P₂ + P₃
    Total Probability = 0.20408 + 0.45455 + 0.30769
    Total Probability ≈ 0.96632

  3. Determine 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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