Let's begin with a lesson in roulette. Roulette is a casino game that involves spinning a ball on a wheel that is marked with numbered squares that are red, black, or green. Half of the numbers 1–36 are colored red and half are black and the numbers 0 and 00 are green. Each number occurs only once on the wheel. We can make many different types of bets, but two of the most common are to bet on a single number (1–36) or to bet on a color (either red or black). These will be the two bets we will consider in this project. After all players place their bets on the table, the wheel is spun and the ball tossed onto the wheel. The pocket in which the ball lands on the wheel determines the winning number and color. The ball can land on only one color and number at a time. We begin by placing a bet on a number between 1 and 36. This bet pays 36 to 1 in most casinos, which means we will be paid $36 for each $1 we bet on the winning number. If we lose, we simply lose whatever amount of money we bet. What is the expected value of a bet on a single number if we bet $1? For a $5 bet, what is the expected value of a bet on a single number? What is the expected value of a bet on a single number if we bet $10? Do you see a pattern in the answers to the last three questions?
Let's begin with a lesson in roulette. Roulette is a casino game that involves spinning a ball on a wheel that is marked with numbered squares that are red, black, or green. Half of the numbers 1–36 are colored red and half are black and the numbers 0 and 00 are green. Each number occurs only once on the wheel.
We can make many different types of bets, but two of the most common are to bet on a single number (1–36) or to bet on a color (either red or black). These will be the two bets we will consider in this project. After all players place their bets on the table, the wheel is spun and the ball tossed onto the wheel. The pocket in which the ball lands on the wheel determines the winning number and color. The ball can land on only one color and number at a time.
We begin by placing a bet on a number between 1 and 36. This bet pays 36 to 1 in most casinos, which means we will be paid $36 for each $1 we bet on the winning number. If we lose, we simply lose whatever amount of money we bet.
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What is the expected value of a bet on a single number if we bet $1?
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For a $5 bet, what is the expected value of a bet on a single number?
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What is the expected value of a bet on a single number if we bet $10?
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Do you see a pattern in the answers to the last three questions?
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