A Roulette wheel has 38 slots numbered 0 to 36 and 00. The wheel is spun and a b

Question

A Roulette wheel has 38 slots numbered 0 to 36 and 00. The wheel is spun and a ball is thrown into the wheel and comes to rest in one of the slots. There are numerous of ways to bet, individual numbers, groups of numbers (1-12, 13-24, etc), by color (half of the numbers are black and the half are red), and in various other combinations. This problem is going to focus on betting $1.00 on the number group 1-12. If the ball lands in any of the values 1-12 the bet is won and the return is $3.00. If the ball lands on any of the other values the bet is lost. a.) Compute the expected value of this game. (4 points) b.) Interpret this expected value. (4 points) c.) What is the average return to the casino from 1,000,000 such bets? (4 points)

Explanation / Answer

a]   outcomes -1$ 3$
probability 1. 12/38
E(x) - 68 cents

b] This value is as per formula of expection
c] 0.68 cents x 1,000,000
There for the casino will most likey get 680,000$ out of this bet.

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