Quantitative Literacy Practice Exam

To determine the probability of winning when the odds are given as 7:1 against, it's essential to understand how odds translate into probability. The odds of 7:1 against mean that for every 1 time you would win, there are 7 times you would lose.

In this case, the total number of outcomes is the sum of the wins and losses, which is 1 (win) + 7 (losses) = 8. The probability of winning is then calculated as the number of successful outcomes divided by the total number of outcomes. Therefore, the probability of winning is:

\[

\text{Probability of winning} = \frac{\text{Number of wins}}{\text{Total outcomes}} = \frac{1}{8}

\]

This conversion from odds to probability shows that when the odds are stacked against a bet, the proportion of potential wins to total outcomes accurately captures the chance of winning. Thus, the correct interpretation of 7:1 odds against leads to a winning probability of 1/8.

The other options present different numerical values and do not correspond with the correct calculation derived from the odds given. Therefore, 1/8 accurately represents the probability based on the set odds.