Question

suppose you are playing a game of chance. If you bet $5 on a certain event, you will collect $115 (including your $5 bet) if you win. Find the odds used for determining the payoff

Answer 1

Answer: So if you loss the game, you lose $5, if you win, you win 110$ (not considering the 5$ you pay).

the relation between this numbers is 110/5 = 22.

so if you win, you are winning 22 times the money you are paying.

this means that in this game you should have a 1/22 (or a 4.5%) odds to win

Answer 2

1) It is 1:27 (you pay $1 and if the horse wins you get $28 and if he loses you lose the $1. 

If the odds are 1:1 it represents a 50% chance and in that case you would pay $1 and get back either $0 o.