Mathematics, 15.04.2020 17:49 rainbowsadie7140
When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 16 or to bet $5 that the outcome is any one of the five possibilities 00, 0, 1 comma 2, or 3. The gambler knows that the expected value of the $5 bet for a single number is negative 0.26 cents. For the $5 bet that the outcome is 00, 0, 1, 2, or 3, there is a probability of 5 Over 38 of making a net profit of $30 and a 33 Over 38 probability of losing $5.
a. Find the expected value for the $5 bet that the outcome is 00, 0, 1, 2, or 3.
b. Which bet is better: a $5 bet on the number 16 or a $5 bet that the outcome is any one of the numbers 00, 0, 1 comma 2, or 3? Why?
Answers: 3
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When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 16...
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