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When playing roulette at a casino, a gambler is trying to decide whether to bet $20 on the number 21 or to bet $20 that
When playing roulette at a casino, a gambler is trying to decide whether to bet $20 on the number 21 or to bet $20 that the outcome is any one of the five possibilities 00, 0, 1, 2, or 3. The gambler knows 5 33 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, or 3, there is a probability of , of making a net profit of $120 and a 30 probability of losing $20. a. Find the expected value for the $20 bet that the outcome is 00, 0, 1, 2, or 3. b. Which bet is better: a $20 bet on the number 21 or a $20 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why
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