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ou place a bet of $2500 The odds in favor of Fast Enough winning the horse race

ID: 3366143 • Letter: O

Question

ou place a bet of $2500 The odds in favor of Fast Enough winning the horse race are 6 to 5. If you place a bet on Fast Enough and he wins the race, you win $6500. a. What is the expected value of your bet? b. Suppose you win. What are your winnings to take home, that is, how much ahead al after the win? On a roulette wheel, the slots are numbered 1 through 36, 0, and 00 for a total of 38 slots Assume you bet on a single slot. The payout for landing on a single slot is 35 to 1. If a chip is worth $5, what is the expected value for a player that plays the number 12 repeatedly? In a raffle, a ticket costs $50. If there are 5000 tickets sold in the raffle and the payout is $10,000, what is the expected value of purchasing one ticket?

Explanation / Answer

a.

Winning probability is 5/6 and loosing chance is 1/6.

So expected value is = (5/6-1/6)*2500=1667$

b.

Then my part of share would be =6500-1667=4833.