Answer:
The expected value of Fast Leg's winnings is $8,000.
Explanation:
The expected value a predicted value calculated by multiplying a value by its probability.
First, we need to calculate the probability of winning Fast leg's horse
Probability = Odd in favor / Total
Where
Adds in favor = 4
Total = 4 + 3 = 7
Placing values in the formula
Probability = 4 / 7
Probability = 0.571429
Now calculate the Expected value of winning
Expected winning value = First Prize x Probability of winning
Where
First prize = $14,000
Probability of winning = 0.571429
Placing values in the formula
Expected winning value = $14,000 x 0.571429
Expected winning value = $8,000
