4. Suppose a gambler has $100 to wager and she splits it into 20 bets of $5 each on Red on 20 different spins of the wheel. Consider the sum of her 20 bets as a diversified portfolio, S₂₀. Using the rules on page 13, find for her gamble

(a) the expected value,

(b) the variance,

(c) the standard deviation.

nphasis Heading Heading 2 1 Normal Paragraph Styles the above details which will give you trouble. Find an honest-looking person who will explain it to you in terms of the photo, above. The roulette layout (or betting table) is shown below! In honor of its French origins, the original French names are shown for some of the bets. In this text, white boxes correspond to red slots, while those in gray boxes correspond to black slots. Roulette Layout Payoffs Bet Black Red High Low Even Odd Payoff 1:1 1:1 1:1 1:1 1:1 1:1 0 00 Passe (High) 1 2 3 Manque (Low) 4 5 6 7 8 9 10 11 12 Pair (Even) 13 14 15 Impair (Odd) 16 17 18 19 20 21 22 23 24 Noir (Black) 25 26 27 Rouge (Red) 28 29 30 31 32 33 34 35 36 C1 C2 C3 1 Number 2 Numbers 3 Numbers 4 Numbers 12 Numbers 35:1 17:1 11:1 8:1 2:1 Columns If a player bets $5 on Black and the ball lands on a black slot, then the player wins $5. Otherwise, the player loses $5. This is salled a 1:1 payoff. Please be careful when interpreting the payoff. People sometimes fall into the mistake of thinking the player has won $10 when she receives both her winnings (55) and her marker chip (55). It is best to Source: Encyclopedia Britannica, a very old edition, hence the French! DOLL nphasis Heading Heading 2 1 Normal Paragraph Styles the above details which will give you trouble. Find an honest-looking person who will explain it to you in terms of the photo, above. The roulette layout (or betting table) is shown below! In honor of its French origins, the original French names are shown for some of the bets. In this text, white boxes correspond to red slots, while those in gray boxes correspond to black slots. Roulette Layout Payoffs Bet Black Red High Low Even Odd Payoff 1:1 1:1 1:1 1:1 1:1 1:1 0 00 Passe (High) 1 2 3 Manque (Low) 4 5 6 7 8 9 10 11 12 Pair (Even) 13 14 15 Impair (Odd) 16 17 18 19 20 21 22 23 24 Noir (Black) 25 26 27 Rouge (Red) 28 29 30 31 32 33 34 35 36 C1 C2 C3 1 Number 2 Numbers 3 Numbers 4 Numbers 12 Numbers 35:1 17:1 11:1 8:1 2:1 Columns If a player bets $5 on Black and the ball lands on a black slot, then the player wins $5. Otherwise, the player loses $5. This is salled a 1:1 payoff. Please be careful when interpreting the payoff. People sometimes fall into the mistake of thinking the player has won $10 when she receives both her winnings (55) and her marker chip (55). It is best to Source: Encyclopedia Britannica, a very old edition, hence the French! DOLL