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An American roulette wheel contains 38 slots. Eighteen of the slots are colored red and eighteen are colored
black. The remaining two slots are colored green. A ball is spun on the wheel and comes to rest in one of the
38 slots. If you bet $1 on the the number 32 and win, the house pays you $36.
What is the expected value of betting on 32?
$1
O-$1
4
O-$5.30
O-$0.053

Respuesta :

anuksha0456

The expected value of betting 32 is -$0.053, making the 4th option the right choice.

In the question, we are asked for the expected value of betting on 32, given that if we bet $1 on the number 32 and win, the house pays $36, and there are 38 slots.

The probability distribution can be shown as:

 x       $35       -$1

p(x)    1/38      37/38

as, if we get 32, which has the probability of 1/38, the winning number, we gain $35, and for the rest, having a probability of 37/38, the losing number, we lose -$1.

Thus, the expected value can be calculated as E(x) = ∑x.p(x).

Thus, the expected value = $35(1/38) + (-$1)(37/38) = -$2/38 = -$0.05263 ≈ -40.053.

Hence, the expected value of betting 32 is -$0.053, making the 4th option the right choice.

Learn more about expected value at

https://brainly.com/question/24151942

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