Question

A wheel has 38 numbers, 1, 2, 3, . . . , 38. a player picks a number and bets $20. the wheel is spun, and if the player's number results, he or she is paid $700 (and gets to keep the $20 bet). if another number results, the house keeps the $20. suppose a typical player bets on 60 spins per hour. what is the expected net gain per hour for the house on each player?

Answer 1

Answer: $63.16

Explanation:

Probability of winning is
`(1)/(38)`. Which means that it would take 38 spins to win one time.

Since the average player spins 60 times then the number of wins is:

`(1)/(38)x 60` = 1.58

So, the average person wins: ($700 + $20) x 1.58 = $720(1.58) = $1136.84

and the average person spends: $20 x 60 spins = $1200.00

The net gain for the house is $1200.00 - $1136.84 = $63.16