A fair gamble is one in which:
A) The expected payoff of a bet is zero.
B) There is an equal probability of winning or losing a bet.
C) The expected payoff from a bet is equal to the bet itself.
D) The expected payoff from a bet is greater than zero.
E) Answers a and c are correct.

Question

Quizplus · Accepted Answer

A fair gamble is defined as one where the expected payoff of a bet is zero (A), meaning that over time, you neither gain nor lose money. Additionally, it can also be described as a situation where the expected payoff from a bet is equal to the bet itself (C), ensuring that the value of what you might win is equivalent to what you have staked.

A Fair Gamble Is One in Which