A player can "bet on a line" by placing a chip at location A in the figure attached. BY placing the chip at A, the player is betting on 1,2,3,0, and 00. This bet pays 2.5 to 1, which means that if a player wins, the player wins 2.5 dollars as well as keeping his or her bet. When the player loses, he or she loses $1. Recall that there are 38 numbers on a roulette wheel. Determine the expected value of betting on the roulette wheel.

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anonymous · Answer

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anonymous · Answer

See attachment above for image of roulette wheel :)

anonymous · Answer

A win means a gain of $2.50..a loss means a loss of $1.00
The probability of it landing on one of those 5 spots is 5/38, so that's the probability of winning. Probability of losing is 1 - 5/38 or 33/38
Expected Value = 5/38 * 2.50  +  33/38 * (-1)