Exercise 4.9

The formulas for the odds in terms of the probability of a certain event, and vice-versa, are the following:

odds = \frac{p}{1-p},
p = \frac{odds}{1+odds}.

(a)

With odds=0.37, we get

p = \frac{0.37}{1 + 0.37} \approx 0.27.

(b)

Similarly, if p = 0.16, we have

odds = \frac{0.16}{1-0.16} \approx 0.19.