Microsoft Office Tutorials and References

In Depth Information

Exhibit 7.8
Fair (50–50) odds for OPLS and attendees

the fair odds simply mean that proﬁt will only be achieved through Entry Fee, in

more complex problems the results of the analysis need not be as simple.

What if $50 is just too large a fee for Fr. Eﬁa or the Archbishop? Is there some

practical combination of a larger (greater than $10), but reasonable, Entry Fee, and

some
nearly
fair odds that will result in $125,000? Exhibit 7.10 shows that if we

set odds cell C9 to 40%, C10 to 40%, and C11 to 50% for OTSD, WOD, and BT,

respectively, and we also set the Entry Fee cell B3 to $30, we can achieve the desired

results of $125,000 in cell K23. You can see that in this case the analysis is not as

simple as before. There are many, many combinations of odds for three games that

will result in the same proﬁt. This set of conditions may be quite reasonable for all

parties, but if they are not, then we can return to the spreadsheet model to explore

other combinations.

As you can see, the spreadsheet model provides a very convenient system for per-

forming sensitivity analysis. There are many other questions that Fr. Eﬁa could pose

and study carefully by using the capabilities of his spreadsheet model. For example,

he has not explored the possibility of also changing the cost of a bet from the current

Search JabSto ::

Custom Search