Question

In the American version of the Game Roulette, a wheel has 18 black slots, 18 red slots and 2 green slots. All slots are the same size. A person can wager on either red or black. Green is reserved for the house. If a player wagers $5 on either red or black and that color comes up, they win $10 otherwise they lose their wager. What is the expected value of playing the game once

Answer 1

-$0.26

Explanation:

Calculation to determine the expected value of playing the game once

Expected value= [18/(18+18+2) x $5)]- [20/(18+18+2) x $5]

Expected value= ($18/38 x $5) - (20/38 x $5)

Expected value= ($2.37-$2.63)

Expected value= -$0.26

Therefore the expected value of playing the game once is -$0.26