Question

a roulette wheel has 38 numbers with 18 black, 18 red and 2 green. the colors are equally spaced from each other. we'll focus on two different bets.1. if you place your money on the correct color (black or red), you win the equivalent of your bet (even money), otherwise you lose your bet.2. if you place your money on the correct number, you win 35 times your bet, otherwise you lose your bet.round to the fourth as needed

Answer 1

(a) expected value = 160*18/38 - 160*20/38 =
-160/19 = -8.421
(b) expected value = 10*35*1/38-10*37/38 =-10/19
: -0.52631
(c) $200 is divided in two equal parts, that is, $100
each. $100 is bet on red
Its expected value = 100*18/38-100*20/38 =
-100/19
Similarly, $100 is bet on black, Its expected value
-100/19
Hence, net expected value =-100/19-100/19
-200/19 = -10.5263
(d) Here $225 is split in three equal part and each is
bet on favourite number.
expected value = 35*75*1/38-75*37/38 = -75/19
As we have three bets, net expected value =
(-75/19)*3=- 11.842