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When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 24 or to bet $5 that
When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 24 or to bet $5 that the outcome is any one of the five possibilities 00, 0, 1, 2, or 3. The gambler knows that the expected value of the $5 bet for a single number is - 534. For the $5 bet that the outcome is 00, 0, 1, 2, or 3, there is a 5 33 probability of so of making a net profit of $30 and a so probability of losing $5. a. Find the expected value for the $5 bet that the outcome is 00, 0, 1, 2, or 3. b. Which bet is better: a $5 bet on the number 24 or a $5 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why? a. The expected value is $ (Round to the nearest cent as needed.)
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