You walk into Foxwoods and walk to the Roulette wheel.  A friend happens to be sitting there and informs you that black has come up an unprecedented 100x’s.  On a roulette wheel there is 60 black and 60 red slots (green also but let’s make it simple!).  You have $100 burning a hole in your pocket.  Which color would you bet on and why?

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You walk into Foxwoods and walk to the Roulette wheel.  A friend happens to be sitting there and informs you that black has come up an unprecedented 100x’s.  On a roulette wheel there is 60 black and 60 red slots (green also but let’s make it simple!).  You have $100 burning a hole in your pocket.  Which color would you bet on and why?

Expert Solution
Step 1: Roulette wheel

To be specific roulette wheel consists of three colours. Black, red and green. 

Now, here green has not been taken into consideration. Therefore, only black and red slots can be used.

Again, according to the friend, Black is giving 100 times of what amount of money you bet.

So, betting on black would be the easiest way to get some money, taking into account that the friend is telling the truth.

So, you should bet on the black color to get 100 times the money you are investing.


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