In the USA, roulette wheels have 38 slots. They are the numbers 1 through 36, 0, and 00.  Half of the numbers 1 through 36 are red, and the other half are black, so there are 18 red numbers and 18 black numbers.  The numbers 0 and 00 are green. If you bet $5 on red, you win $5 if the ball lands on a red number. Otherwise, you lose your $5. In class we found your expected value from this bet was $-.26.  However, if you play in Atlantic City, they give you a break when betting on a single color like red and if the ball lands on 0 or 00 you only lose half your bet, or $2.50.  If the ball lands on black you still lose your whole bet of $5.00.  Find the expected value of betting $5 on red in Atlantic City.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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  1. In the USA, roulette wheels have 38 slots. They are the numbers 1 through 36, 0, and 00.  Half of the numbers 1 through 36 are red, and the other half are black, so there are 18 red numbers and 18 black numbers.  The numbers 0 and 00 are green. If you bet $5 on red, you win $5 if the ball lands on a red number. Otherwise, you lose your $5. In class we found your expected value from this bet was $-.26.  However, if you play in Atlantic City, they give you a break when betting on a single color like red and if the ball lands on 0 or 00 you only lose half your bet, or $2.50.  If the ball lands on black you still lose your whole bet of $5.00.  Find the expected value of betting $5 on red in Atlantic City.  
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In the USA, roulette wheels have 38 slots. 

They are the numbers 1 through 36, 0, and 00. 

There are 18 red numbers and 18 black numbers.  

If you bet $5 on red, you win $5 if the ball lands on a red number. Otherwise, you lose your $5.

The expected value from this bet was $-0.26.

 

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