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CAT 2025 Lesson : Probability - Odds For & Against

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7. Odds for and Odds Against

The odds for an event is the ratio of the number of favourable cases to the number of unfavourable cases.

Odds for event E
=n(E)n(E)=P(E)P(E)= \dfrac{n(\text{E})}{n(\overline{\text{E}})} = \dfrac{\text{P}(\text{E})}{\text{P}(\overline{\text{E}})}

The odds against an event is the ratio of number of unfavourable cases to the number of favourable cases.

Odds against event E
=n(E)n(E)=P(E)P(E)= \dfrac{n(\overline{\text{E}})}{n(\text{E})} = \dfrac{\text{P}(\overline{\text{E}})}{\text{P}(\text{E})}

For instance, if the probability of India winning a match is
45\dfrac{4}{5}, then for every 44 wins, there should be 11 loss.

\therefore Odd for India winning is 4\bm{4} to 1\bm{1}, while Odds against India winning is 1\bm{1} to 4\bm{4}.

Example 21

The odds in favour of OnePlus launching a new phone is 44 to 33, while the odds against Apple launching a new phone is 22 to 55. What is the odds in favour of at least one of them launching a new phone?

Solution

Probability of OnePlus and Apple launching new phones are 47\dfrac{4}{7} and 57\dfrac{5}{7} respectively.

Probability of neither of them launching
=(147)×(157)=37×27=649= \left(1 - \dfrac{4}{7}\right) \times \left(1 - \dfrac{5}{7}\right) = \dfrac{3}{7} \times \dfrac{2}{7} = \dfrac{6}{49}

Probability of at least one of them launching
=1649=4349= 1 - \dfrac{6}{49} = \dfrac{43}{49}

Odds in favour of at least one of them launching
=43= 43 to (4943)=43(49 - 43) = \bm{43} to 6\bm{6}

Answer:
4343 to 66

Example 22

The odds for CSK defeating MI is 44 to 11. CSK and MI play 33 friendly games. What are the odds against CSK defeating MI in all 33 games?

(
11) 6161 to 6464            (22) 6464 to 6161           (33) 6464 to 125125           (44) 125125 to 6464          

Solution

We should first convert the odds to probability and then apply it.

P(CSK beating MI) =44+1=45= \dfrac{4}{4 + 1} = \dfrac{4}{5}

P(CSK beating MI in all
33 games) =45×45×45=64125= \dfrac{4}{5} \times \dfrac{4}{5} \times \dfrac{4}{5} = \dfrac{6 4}{125}-----(1)

P(CSK not beating MI in all
33 games) =164125=61125= 1 - \dfrac{64}{125} = \dfrac{61}{125} -----(2)

Odds against CSK beating MI in all
33 games =P(E)P(E)=(2)(1)=6164= \dfrac{\text{P}(\overline{\text{E}})}{\text{P}(\text{E})} = \dfrac{(2)}{(1)} = \dfrac{61}{64}

Answer: (
11) 6161 to 6464

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