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AssignmentMultiple Choice

Consumer Responsibilities

Question 1 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

Which accurately compares or contrasts probability and odds?

Answer
A
Both probability and odds consider the probability that the event will not occur.
B
A probability must lie between 0 and 1, whereas odds can take any positive value.
C
Using a colon, we express probabilities and odds as a ratio of one number to another.
D
Odds is the ratio of the number of favorable outcomes to the number of possible outcomes.

Explanation

Probability is the chance an event occurs, so it ranges from 0 to 1, inclusive. Odds compare favorable outcomes with unfavorable outcomes and can be any positive value (including values greater than 1). Choice D describes probability, not odds, because its denominator counts all possible outcomes.

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