Question

A spinner game has a wheel with the numbers zero through 19 marked in equally spaced slots. Consider a $1 bet on a number from 1 to 19. If your number hits, you have $19 returned to you; otherwise, you lose your $1 bet. Find the expected return for this bet. (Round your answer to two decimal places.)

Answer 1

The expected return for this bet is $0.05

Explanation:

Given that A spinner game has a wheel with the numbers zero through 19 marked in equally spaced slots.

So the Total number of slots in the spinner = 20 [0(1 slot) + 19 = 20 slots]

Now the probability of winning =
`\frac{\text{Desired outcome}}{\text{total number of outcomes}}`

Substituting the values

Probability (winning) =
`(1)/(20)`

Winning amount = $19

Expected return for this bet = Winning amount x Probability(winning) - Cost of bet

=>
`19 * (1)/(20) - 1`

=>
`19 * 0.05 - 1`

=>0.95-1

=> 0.05