When playing roulette at a​ casino, a gambler is trying to decide whether to bet ​$5 on the number 32 or to bet ​$5 that the outcome is any one of the three possibilities 00, 0, or 1. The gambler knows that the expected value of the ​$5 bet for a single number is −53¢. For the

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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When playing roulette at a​ casino, a gambler is trying to decide whether to bet
​$5
on the number
32
or to bet
​$5
that the outcome is any one of the
three
possibilities
00, 0, or 1.
The gambler knows that the expected value of the
​$5
bet for a single number is
−53¢.
For the
​$5
bet that the outcome is
00, 0, or 1​,
there is a probability of
338
of making a net profit of
​$20
and a
3538
probability of losing
​$5.
a. Find the expected value for the
​$5
bet that the outcome is
00, 0, or 1.
b. Which bet is​ better: a
​$5
bet on the number
32
or a
​$5
bet that the outcome is any one of the numbers
00, 0, or 1​?
​Why?
 
 
 
a. The expected value is
​$enter your response here.
​(Round to the nearest cent as​ needed.)
b. Since the expected value of the bet on the number
32
is
 
less
greater
than the expected value for the bet that the outcome is
00, 0, or 1​,
the bet on
 
00, 0, or 1
the single number
is better.
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