In "Longshot," Charlie explains that the racetrack uses a pari-mutual betting system - the odds of winning vary with the amount bet on each horse. This system not only calculates proportional payoffs for the bettors, but also guarantees a profit for the racetrack owners by removing a percentage of the money bet before the rest is split among the winners.
This activity examines the mathematical expectation of the player - the amount a person can expect to win (or lose) in the long run on average.

Download the attached PDF and look over the Teacher Page.

Discuss the materials from the Student Page with your class.

Encourage students to explore web sites and questions from the Extensions Page.