CONTEST QUESTION

[gambler844]

Im trying to figure out where i get the most for my money. If someone has the time, I would appreciate it if they would show me how to figure out which contest i get the most for my money.

Contest #1
$25 to enter--- Pays $1000 prize to top person --125 people enter

Contest #2
$75 to enter---- Pays $600 prize to each of top 7 people--125 people enter

Contest #3
$50 to enter---Pays $500 prize to each of top 5 people--125 people enter


Thanks for any help
ed

[CBedo]

First off, from a financial standpoint, NONE of them look very good. The $25 entry is paying back only 32% of entries, the $50 is paying back 40% of entries, and the the $75 is best at a whopping 44.8% of entries (and you thought there were big takeouts in the exotic bets, haha). So from that standpoint I guess the $75 is best if you are equally likely to finish in the first to seventh spot.

[Track Collector]

I agree with CBedo. Makes me wonder if the organizers only care about making the most money for themselves vs. offering a fair value for the players. Perhaps running a tournament is much more expense than I am aware of.

Another element you should take in to consideration is the specific set of rules and playing conditions of each tournament. Maybe one favors your handicapping strengths and preferences more than another, so even though the payout to entry fee ratio is worse than the other tournaments, YOU would have a better chance of cashing in that specific tournament.

[misscashalot]

I agree with CBedo. Makes me wonder if the organizers only care about making the most money for themselves vs. offering a fair value for the players......

Maybe it's run by Microsoft

[Bill Cullen]

Assuming that all the handicappers are of equal talent in the three different contests, then the calculation of the chances of winning each contest can be predicated on the model of a random drawing:

1) Odds of winning contest #1 = 1/125 (124 to 1 against)

2) Odds of winning contest #2 = 7/125 = 1/17.85 (16.85 to 1 against)

3) Odds of winning contest #3 = 5/125 = 1/25 (24 to 1 against)

Then you calculate the payoff odds for each contest:

1) $1000/$25 = 39/1 (39 dollars won for each dollar wagered)

2) $600/$75= 7/1 (7 dollars won for each dollar wagered)

3) $500/$50 = 9/1 ( 9 dollars won for each dollar wagered)

Finally you calculate the "attractiveness" of each contest by examining the ratio of the payoff odds to the winning odds. You want the highest payoff odds relative to the best chances of winning a contest so the contest with the highest ratio of the payoff odds to the winning odds is the choice.

1) contest #1 --> payoff odds to winning odds = 39/124 = .314

2) contest #2 --> payoff odds to winning odds = 7/16.85 = .415

3) contest #3 --> payoff odds to winning odds = 9/24 = .375


Contest #2 is the pick.

Best,

Bill C

[point given]

Assuming that all the handicappers are of equal talent in the three different contests, then the calculation of the chances of winning each contest can be predicated on the model of a random drawing:

1) Odds of winning contest #1 = 1/125 (124 to 1 against)

2) Odds of winning contest #2 = 7/125 = 1/17.85 (16.85 to 1 against)

3) Odds of winning contest #3 = 5/125 = 1/25 (24 to 1 against)

Then you calculate the payoff odds for each contest:

1) $1000/$25 = 39/1 (39 dollars won for each dollar wagered)

2) $600/$75= 7/1 (7 dollars won for each dollar wagered)

3) $500/$50 = 9/1 ( 9 dollars won for each dollar wagered)

Finally you calculate the "attractiveness" of each contest by examining the ratio of the payoff odds to the winning odds. You want the highest payoff odds relative to the best chances of winning a contest so the contest with the highest ratio of the payoff odds to the winning odds is the choice.

1) contest #1 --> payoff odds to winning odds = 39/124 = .314

2) contest #2 --> payoff odds to winning odds = 7/16.85 = .415

3) contest #3 --> payoff odds to winning odds = 9/24 = .375


Contest #2 is the pick.

Best,

Bill C

I'll take door number 2. Come on down.

[Brogan]

Assuming that all the handicappers are of equal talent in the three different contests, then the calculation of the chances of winning each contest can be predicated on the model of a random drawing:

1) Odds of winning contest #1 = 1/125 (124 to 1 against)

2) Odds of winning contest #2 = 7/125 = 1/17.85 (16.85 to 1 against)

3) Odds of winning contest #3 = 5/125 = 1/25 (24 to 1 against)

Then you calculate the payoff odds for each contest:

1) $1000/$25 = 39/1 (39 dollars won for each dollar wagered)

2) $600/$75= 7/1 (7 dollars won for each dollar wagered)

3) $500/$50 = 9/1 ( 9 dollars won for each dollar wagered)

Finally you calculate the "attractiveness" of each contest by examining the ratio of the payoff odds to the winning odds. You want the highest payoff odds relative to the best chances of winning a contest so the contest with the highest ratio of the payoff odds to the winning odds is the choice.

1) contest #1 --> payoff odds to winning odds = 39/124 = .314

2) contest #2 --> payoff odds to winning odds = 7/16.85 = .415

3) contest #3 --> payoff odds to winning odds = 9/24 = .375


Contest #2 is the pick.

Best,

Bill C

I agree, contest #2 is the best of a poor lot.