PROBABILITY STATISTICS

Sigchi4life
Category:
Statistics
Price: $10 USD

Question description

the payout on matching a color (red/black) in a 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: P(red)= 18/38 = 9/19

EV= (9/19) ($1)=$0.47

2. Interpret your answer for part a in the context of the problem: you have a 9 in 19 chance of winning a dollar

____________________________________________________________________

REFER TO THE PROBLEM ABOVE (I already solved the problem above): The expected value for a $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 question marks)

Winning bet:

Color(red/black): Probability= 18/38    Payout=  1 to 1      Expected value?

Single number     Probability?                Payout?                         Expected value?


Tutor Answer

(Top Tutor) Daniel C.
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School: University of Maryland
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