Bob, the proprietor of Midland Lumber, feels that the odds in favor of a business deal going through are 7 to 6. What is the (subjective) probability that this deal will not materialize?
A) 0.4647
B) 0.4622
C) 0.4615
D) 0.4460

Question

Quizplus · Accepted Answer

The odds in favor of the deal are 7 to 6, meaning the probability of the deal going through is 7/(7+6) = 7/13. Therefore, the probability of the deal not materializing is 1 - 7/13 = 6/13 = 0.4615.

Bob, the Proprietor of Midland Lumber, Feels That the Odds