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When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 32 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 - 0.26¢. For the $5 bet that the outcome is 00, 0, 1, 2, or 3, there is a 5 33 probability of losing $5 of making a net profit of $30 and a 38 probability of 38 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 32 or a $5 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why?

When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 32 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 - 0.26¢. For the $5 bet that the outcome is 00, 0, 1, 2, or 3, there is a 5 33 probability of losing $5 of making a net profit of $30 and a 38 probability of 38 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 32 or a $5 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why?

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
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When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 32 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 - 0.26¢. For the $5 bet that the outcome is 00, 0, 1, 2, or 3, there is a 5 33 probability of losing $5 of making a net profit of $30 and a 38 probability of 38 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 32 or a $5 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why?
Transcribed Image Text:When playing roulette at a casino, a gambler is trying to decide whether to bet $5 on the number 32 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 - 0.26¢. For the $5 bet that the outcome is 00, 0, 1, 2, or 3, there is a 5 33 probability of losing $5 of making a net profit of $30 and a 38 probability of 38 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 32 or a $5 bet that the outcome is any one of the numbers 00, 0, 1, 2, or 3? Why?
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