Bridge jumper on Zenyatta

[Bobby Fischer]

terrible value / tempting gamble

say the horse has a 90% chance to show
hit% = 90
payout = $2.10
Value = .95 (lose 5cents on the dollar over infinite # wagers)

a fair 3-1 shot going off at 6.5-1 offers TWICE the value
hit% = 25
payout = $15.00
value = 1.88

Bridge Jumping is a losing long term investment.


However you do have a 90% chance of getting 5% interest on your money.
For some that would be a tempting Gamble.

[dalakhani]

Originally Posted by Bobby Fischer

terrible value / tempting gamble

say the horse has a 90% chance to show
hit% = 90
payout = $2.10
Value = .95 (lose 5cents on the dollar over infinite # wagers)

a fair 3-1 shot going off at 6.5-1 offers TWICE the value
hit% = 25
payout = $15.00
value = 1.88

Bridge Jumping is a losing long term investment.


However you do have a 90% chance of getting 5% interest on your money.
For some that would be a tempting Gamble.

And i dont disagree with the math at all IF the horse ONLY had a 90% chance to show. See the point?

There are given scenarios where the horse is much better than 90%. Of course, this is subjective.

[Bobby Fischer]

Originally Posted by dalakhani

There are given scenarios where the horse is much better than 90%. Of course, this is subjective.

not really. The most you could even add in Theory is 10 percentage points.

In real life you just don't have enough information to assign a horse 100% hit rate. Not to mention the slew of things that can unexpectedly go wrong.

In real life a "lock" to show isn't going to be any higher than 95%


Even a 95% hit% is only a .9975 Value. Still a losing long-term investment.

You would be hard pressed to find a 95% hit rate for a show wager.


A bad investment / a tempting gamble

[dalakhani]

Originally Posted by Bobby Fischer

not really. The most you could even add in Theory is 10 percentage points.

In real life you just don't have enough information to assign a horse 100% hit rate. Not to mention the slew of things that can unexpectedly go wrong.

In real life a "lock" to show isn't going to be any higher than 95%


Even a 95% hit% is only a .9975 Value. Still a losing long-term investment.

You would be hard pressed to find a 95% hit rate for a show wager.


A bad investment / a tempting gamble

Worse than an investment in bear stearns? Or a CD at indymac?

[Bobby Fischer]

Originally Posted by dalakhani

Worse than an investment in bear stearns? Or a CD at indymac?

I am talking about investment in horseracing, not degenerate gamblers in the stock market.