When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 35 or to bet $10 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 $10 bet for a single number is −$1.06. For the $10 bet that the outcome is 00, 0, 1, 2, or 3, there is a probability of 538 of making a net profit of $60 and a 3338 probability of losing $10. a. Find the expected value for the $10 bet that the outcome is 00, 0, 1, 2, or 3. b. Which bet is better: a $10 bet on the number 35 or a $10 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why? a. The expected value is $nothing. (Round to the nearest cent as needed.) b. Since the expected value of the bet on the number 35 is ▼ greater less than the expected value for the bet that the outcome is 00, 0, 1, 2, or 3, the bet on ▼ the single number 00, 0, 1, 2, or 3 is better.
When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 35 or to bet $10 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 $10 bet for a single number is −$1.06. For the $10 bet that the outcome is 00, 0, 1, 2, or 3, there is a probability of 538 of making a net profit of $60 and a 3338 probability of losing $10. a. Find the expected value for the $10 bet that the outcome is 00, 0, 1, 2, or 3. b. Which bet is better: a $10 bet on the number 35 or a $10 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why? a. The expected value is $nothing. (Round to the nearest cent as needed.) b. Since the expected value of the bet on the number 35 is ▼ greater less than the expected value for the bet that the outcome is 00, 0, 1, 2, or 3, the bet on ▼ the single number 00, 0, 1, 2, or 3 is better.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.4: Expected Value
Problem 1E: If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the...
Related questions
Concept explainers
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Topic Video
Question
When playing roulette at a casino, a gambler is trying to decide whether to bet
expected value of the
$10
on the number
35
or to bet
$10
that the outcome is any one of the
five
possibilities
00, 0, 1, 2, or 3.
The gambler knows that the $10
bet for a single number is
−$1.06.
For the
$10
bet that the outcome is
00, 0, 1, 2, or 3,
there is a probability of
538
of making a net profit of
$60
and a
3338
probability of losing
$10.
a. Find the expected value for the
$10
bet that the outcome is
00, 0, 1, 2, or 3.
b. Which bet is better: a
$10
bet on the number
35
or a
$10
bet that the outcome is any one of the numbers
00, 0, 1, 2, or 3?
Why?a. The expected value is
$nothing.
(Round to the nearest cent as needed.)
b. Since the expected value of the bet on the number
than the expected value for the bet that the outcome is
is better.
35
is
▼
greater
less
00, 0, 1, 2, or 3,
the bet on
▼
the single number
00, 0, 1, 2, or 3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning