Deborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball dro into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. The expected value of Deborah's bet (after subtracting the $1.00 she bet) is $ Given that Deborah makes this bet, she must be

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Deborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball drops into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. The expected value of Deborah’s bet (after subtracting the $1.00 she bet) is $[Dropdown].

Given that Deborah makes this bet, she must be [Dropdown].
Transcribed Image Text:Deborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball drops into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. The expected value of Deborah’s bet (after subtracting the $1.00 she bet) is $[Dropdown]. Given that Deborah makes this bet, she must be [Dropdown].
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