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Odds

A common way of expressing probability is in the form of the odds of an event. The odds of an event is defined as the ratio of the probability of the event occurring to the probability of it not occurring i.e. $ \Pr(A)/\Pr(not A)$. So an event with probability 0.001 has odds of 1/999 (or 999:1 against in gambling jargon). Odds can range from zero to infinity and are equal to one for events whose occurrence and non-occurence are equally likely (known as evens by gamblers). Odds can be used to assess the total risk of a set of independent events by simply multiplying together the odds of the individual events.



David Stephenson 2005-09-30