When playing roulette at a casino, a gambler is trying to decide whether to bet

$20

on the number

27

or to bet

$20

that the outcome is any one of the

five

possibilities

00,0,1,2,or3.

The gambler knows that the expected value of the

$20

bet for a single number is

$2.10.

For the

$20

bet that the outcome is

00,0,1,2,or3,

there is a probability of

538

of making a net profit of

$120

and a

3338

probability of losing

$20.

a. Find the expected value for the

$20

bet that the outcome is

00,0,1,2,or3.

b. Which bet is better: a

$20

bet on the number

27

or a

$20

bet that the outcome is any one of the numbers

00,0,1,2,or3?

Why?

Question content area bottom

Part 1

a. The expected value is

$enter your response here.