When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 14 or to bet $10 that the outcome is any one of the three possibilities 00, 0, or 1. The gambler knows that the expected value of the $10 bet for a single number is - $1.06. For the $10 bet that the outcome is 00, 0, or 1, there is a probability of 38 of making a net profit of 35 $40 and a 38 probability of losing $10. a. Find the expected value for the $10 bet that the outcome is 00, 0, or 1. b. Which bet is better: a $10 bet on the number 14 or a $10 bet that the outcome is any one of the numbers 00, 0, or 1? Why? a. The expected value is $. (Round to the nearest cent as needed.) b. Since the expected value of the bet on the number 14 is V than the expected value for the bet that the outcome is 00, 0, or 1, the bet on V is better.

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The expected value is

​$
When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 14 or to bet $10 that the outcome is any one of the three possibilities 00, 0, or 1. The
gambler knows that the expected value of the $10 bet for a single number is - $1.06. For the $10 bet that the outcome is 00, 0, or 1, there is a probability of
3
of making a net profit of
38
35
$40 and a
probability of losing $10.
38
a. Find the expected value for the $10 bet that the outcome is 00, 0, or 1.
b. Which bet is better: a $10 bet on the number 14 or a $10 bet that the outcome is any one of the numbers 00, 0, or 1? Why?
a. The expected value is $.
(Round to the nearest cent as needed.)
b. Since the expected value of the bet on the number 14 is
than the expected value for the bet that the outcome is 00, 0, or 1, the bet on
V is better.
Transcribed Image Text:When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 14 or to bet $10 that the outcome is any one of the three possibilities 00, 0, or 1. The gambler knows that the expected value of the $10 bet for a single number is - $1.06. For the $10 bet that the outcome is 00, 0, or 1, there is a probability of 3 of making a net profit of 38 35 $40 and a probability of losing $10. 38 a. Find the expected value for the $10 bet that the outcome is 00, 0, or 1. b. Which bet is better: a $10 bet on the number 14 or a $10 bet that the outcome is any one of the numbers 00, 0, or 1? Why? a. The expected value is $. (Round to the nearest cent as needed.) b. Since the expected value of the bet on the number 14 is than the expected value for the bet that the outcome is 00, 0, or 1, the bet on V is better.
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