1. On a roulette wheel, there are 40 slots, 10 of which are colored red. If you bet $7 on red and win, you get $14 back. If not, you lose your $7. 2. The expected value for this game is +$7(1/4) + -$7 (3/4) = -$3.50 3. This game is not fair because the expected value is negative, but at least there is a 25% chance for the person to win $14.
1. On a roulette wheel, there are 40 slots, 10 of which are colored red. If you bet $7 on red and win, you get $14 back. If not, you lose your $7. 2. The expected value for this game is +$7(1/4) + -$7 (3/4) = -$3.50 3. This game is not fair because the expected value is negative, but at least there is a 25% chance for the person to win $14.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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4. If there were 18 slots instead of 10, what would be the new expected value ?
Transcribed Image Text:1. On a roulette wheel, there are 40 slots, 10
of which are colored red. If you bet $7 on red
and win, you get $14 back. If not, you lose
your $7.
2. The expected value for this game is
+$7(1/4) +-$7 (3/4) = -$3.50
3. This game is not fair because the expected
value is negative, but at least there is a 25%
chance for the person to win $14.
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