After extensive research,an analyst asserts that there is an 80% chance that ABC Corporation will beat its EPS forecast.Analogously,the odds for the company beating its EPS forecast are _______.
A)1 in 4
B)1 in 1.25
C)4 to 1
D)1.25 to 1

Question

Quizplus · Accepted Answer

The odds are the ratio of the probability of an event occurring to the probability of it not occurring. In this case, the probability of ABC Corporation beating its EPS forecast is 0.8, and the probability of it not occurring is 0.2. Therefore, the odds are 0.8/0.2 = 4 to 1.

After Extensive Research,an Analyst Asserts That There Is an 80