at the start of the 2010 world cup, the betting exchange Betfair stated that the odds against being the winning team were 9/2 for Spain, 11/2 for Brazil, 6/1 for England, and 90/1 for the United...

Q: -At the start of the 2010 world cup, the betting exchange Bet fair stated that the odds against

being the winning team were 9/2 for Spain, 11/2 for Brazil, 6/1 for England, and 90/1 for the United
States. Find the corresponding prior probabilities of winning for these four teams
Sol: - Odds against winning is defined as




............. (1)
a) Consider the case of Spain
Now, we are given with




Now, using equation (1) we get





From this we get




............. (2a)
Now, we know...