Quantitative Method

canipungoel
Good Student
Posts: 27
Joined: Mon Feb 23, 2015 3:38 am

Quantitative Method

Postby canipungoel » Thu Feb 26, 2015 11:06 am

Probability of any event in terms of odds for and against the events.

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Quantitative Method

Postby edupristine » Fri Feb 27, 2015 8:07 am

odd for an event or against an event is a way of defining probability. for example if probability of an event occurring is 1/5 then odds for an event occurring will be (1/5)/(4/5) or odds for an event/(1 - odds for an event). hence odds for an event occurring is 0.25 or one-to-four.
Odds against the event or simply probability of not occurring an event is reciprocal of odds for an event. in our example odds against an event will be 4 or four-to-one.


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