Expected Value and Roulette

[mdenham2]

2) A roulette wheel has 38 slots. 36 of them are the numbers 1 - 36. The remaining 2 are "0" and "00". You can bet on a single number and if the ball lands on your number you win 35 chips plus the chip you bet.

a. If each chip is worth $1, what is the expected value for a player who bets the number 17 for a long period of time?

 

[arthur ohlsten]

prob of winning = 1/38
amount bet =$1
amount you win =36

expected gain = [1/38][$36]-[37/38[$1]
expected gain= 36/38- 37/38
expected gain = - $1/38

you loose about 3 cents every time you bet

Arthur