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[Probability/Statistics] What's the Optimal Strategy for this Betting Scenario?
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MisterBurkes is in Probability/Statistics
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Hey all, what's the best strategy in this scenario:

There are 8 horses. You can place any number of bets totaling $500.

You can bet on any number of horses, and you can also use multiple betting options on a single horse (ie. pick horse #5 to win it all and to place top 3)

Available betting options:

Bet on 1 horse to win it all: 600% return on your bet ($1 bet, receive $7 in return)

Bet on 1 horse to place top 2: 400% return on your bet. ($1 bet, receive $5 in return)

Bet on 1 horse to place top 3: 100% return on your bet. ($1 bet, receive $2 in return)

You start with $100, and there are 20 races in total (so 20 rounds of betting). You are looking to maximize your earnings after 20 rounds. You are required to make at least 1 bet per round, with a minimum bet of $1.

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8 years ago