BET theory
Okay kiddo, let's say you and your friend Emily want to have a race. You think you will win, but Emily thinks she will win.
Now, let's say you both decide to make a bet. The bet is that if you win, Emily has to give you a cookie, but if Emily wins, you have to give her a toy. This is called "betting."
Bet theory is when we start to think about how to make the best bets based on the information we have.
Let's say you and Emily have raced before and you won every time. This information might make you think that you will definitely win again, so you might feel confident in making a bigger "bet."
But what if you woke up feeling sick on the day of the race? This new information might make you think that you might not win this time, so you might want to make a smaller "bet" or even back out of the race altogether.
Bet theory is all about using the information we have to make smart decisions about what to bet and when to bet. It's kind of like making a plan before the race even starts so that we don't end up with a toy when we really wanted a cookie!
Now, let's say you both decide to make a bet. The bet is that if you win, Emily has to give you a cookie, but if Emily wins, you have to give her a toy. This is called "betting."
Bet theory is when we start to think about how to make the best bets based on the information we have.
Let's say you and Emily have raced before and you won every time. This information might make you think that you will definitely win again, so you might feel confident in making a bigger "bet."
But what if you woke up feeling sick on the day of the race? This new information might make you think that you might not win this time, so you might want to make a smaller "bet" or even back out of the race altogether.
Bet theory is all about using the information we have to make smart decisions about what to bet and when to bet. It's kind of like making a plan before the race even starts so that we don't end up with a toy when we really wanted a cookie!