this is probably very simple for you guys but i'm not sure how to think about this and just wanted to understand how badly i was being ripped off if at all.
so in an 11 horse race we place a bet on a horse at odds of 3.0, one horse pulls out before the race leaving 10. Now the exchange reduces our odds to 2.5 before the race has started.
so they've shaved off .5 on our price and are saying our chances have increased by 6.7%
I figured that is correct because odds of 3 represent 33.3% chance and 2.5 is 40%.
This is where I get a bit confused because if all the horses have an even chance, then the horses should have 10% chance each. But obviously that isn't the case yet their 6.7% feels very steep considering the horse wouldn't have had much impact on the outcome imo.
So is that reduction in price fair or how do they calculate it on exchanges?
Sorry if that's a bit muddled I'm just a beginner trying to figure out how to think about this mathematically. If anyone could explain this it would be much appreciated