Julian Spears

Mathematics

23 January, 08:34

When playing roulette at a casino, a gambler is trying to decide whether to bet $20 on the number 10 or to bet $20 that the outcome is any one of the three possibilities 00 comma 0 comma or 1. The gambler knows that the expected value of the $20 bet for a single number is negative $ 1.05. For the $20 bet that the outcome is 00 comma 0 comma or 1 , there is a probability of StartFraction 3 Over 38 EndFraction

of making a net profit of $80 and a StartFraction 35 Over 38 EndFraction

probability of losing $20.