Returns: float: Expected value of the bet. """ expected_value = probability * payoff - (1 - probability) * risk_free_rate return expected_value

import numpy as np

def evaluate_bet(probability, payoff, risk_free_rate): """ Evaluate a bet by calculating its expected value.

Here is a sample code from the github repo:

Thinking in Bets: A Probabilistic Approach to Decision-Making under Uncertainty