If the bookmakers who run sports betting operations were to set ...

[kaid0807]

If the bookmakers who run sports betting operations were to set fair odds, so that both the house and those placing bets had expected values of zero, then the probabilities for all of the players should sum to 1, but they don't. Do they sum to a higher or lower value, and why?

Question 2

Research shows that people tend to detect patterns even where none exist, and to __________ the degree of clustering of outcomes in sports events, as in other sequential data (for example the chance of being on a shooting streak in basketball).
 Fill in the blank(s) with correct word

[essyface1]

Answer to Question 1

FOR THE BOOKMAKERS TO MAKE MONEY, THEY SET THE ODDS SO THAT THE PROBABILITIES OF ALL THE PLAYERS SUM TO A NUMBER GREATER THAN ONE. SINCE SO MANY PEOPLE WILL BE PLACING BETS, THE BOOKMAKERS' WINNINGS SHOULD BE CLOSE TO THE EXPECTED VALUE SET BY THE ODDS.

Answer to Question 2

OVERESTIMATE

[kaid0807]

Excellent

[isabelt_18]

Thanks for the timely response, appreciate it