Question

One option in a roulette game is to bet $13 on red. (There are 18 red compartments, 18 black compartments, and two compartments that are neither red nor black.) If the ball lands on red, you get to keep the $13 you paid to play the game and you are awarded $13. If the ball lands elsewhere, you are awarded nothing and the $13 that you bet is collected. Complete parts (a) through (b) below. R a. What is the expected value for playing roulette if you bet $13 on red? $0 (Round to the nearest cent.)​

Answer 1

-$0.68

Explanation:

e(x) = sum of [xp(x)]

p(red) = 18/38

p(not red) = 20/38

e(red) = 13 × 18/38 + (-13)(20/38)

e(red) = 13 × 9/19 + (-13)(10/19)

e(red) = -13/19

e(red) = -0.68