When playing roulette at acasino, a gambler is trying to decide whether to bet $20 on the number 12 or to bet $20 that the outcome is any one of the three possibilities 00,0,or1. The gambler knows that the expected value of the $15 bet for a single number is $2.10. For the $20 bet that the outcome is 00,0,or1, there is a probability of 3/38 of making a net profit of $60 and a 35/38 probability of losing $20.

a. Find the expected value for the $20 bet that the outcome is 00,0,or1.

b. Which bet isbetter: a $20 bet on the number 12 or a $20 bet that the outcome is any one of the numbers 00,0,or1? Why?

a. The expected value is $ negative =_______

(Round to the nearest cent asneeded.)

b. Since the expected value of the bet on the number 34 is greater than the expected value for the bet that the outcome is 00,0,or1, the bet on the single number is better.