The payout on matching a color (red/black) in roulette is one to one. In other words, if you bet a dollar and win, you get a dollar. There are 38 slots on a roulette wheel,18 of which are red, 18 of which are black, and 2 of which are green (0 and 00)
1. Compute the expected value for a $1 bet on the color red
2. Interpret your answer for part a in the context of the problem
REFER TO THE SETUP OF THE PROBLEM ABOVE: The expected value for $1 bet is actually the same for any possible bet that can be made in a game of roulette. Use the expected value from part a to compute the payout of winning a game of roulette by placing a bet on any single number. Fill in the table and answer the question marks
Color (red/black) Probability: 18/38 Payout: 1 to 1 Expected value?
Single number Probability ? Payout? Expected value?