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Textbook: Writing for Statistics and Data Science

If you are looking for my textbook Writing for Statistics and Data Science here it is for free in the Open Educational Resource Commons. Wri...

Sunday, 11 April 2021

Wow, what are the odds? (Part 1: American Odds, Decimal Odds, and Implied Probability)

The term "odds" is slippery because it's used to mean different things in different contexts. In layperson terms, "odds" is often used as a synonym for probability. In proper statistical terms, "odds" is a function of probability, but it's not the same as probability. There are also other uses of the term "odds" in gambling contexts which are functions of a parallel concept called "implied probability". In these notes, we're going to look at some common types of odds in statistics and gambling contexts, and some of the calculations to convert between them.