Question

Choose a gambling game. Describe it, and find the expected value of playing the game. Is...

Choose a gambling game. Describe it, and find the expected value of playing the game. Is it fair? Why or why not?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans : I have chosen betting on black/red on roulette wheel

There are 18 black slots, 18 red slots and two green slots (0 and 00) on a US roulette wheel*.

Your chances of hitting a black or red are equal,

I.e. Expected value of getting a black or red slot = 18/38= 47.4%. This translates to a 52.6% probability that the house will be scooping up all your chips on a black/red bet. The 5.26% 'spread' is known as the house edge.

Let's say if you bet a $1 on black. If the dice ends up on black, I will get my $1 back and an additional $1 but if it doesn't end up on black, I will lose my one dollar

Expected value of winning = (18/38)*1 - (20/38)* -1

= -0.0526

Since the expected value is negative, the game is not fair. I am expected to lose approximately $0.05 per game in the long run if I keep betting on black

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Week 5 Discussion Choose a gambling game. Describe it, and find the expected value of playing...
Week 5 Discussion Choose a gambling game. Describe it, and find the expected value of playing the game. Is it fair? Why or why not? Respond whether you agree or disagree with your classmate’s post, and explain why. Remember to always be polite, and use full sentences and proper grammar.
Suppose you are playing a game of chance. You pay $50 to play by rolling a...
Suppose you are playing a game of chance. You pay $50 to play by rolling a fair die one time, if you roll a 1 you will receive $300, if you roll a 3 or a 6 you will receive $150, if you roll a 2, 4 or 5 you will receive nothing.                                                         (6) Find your (the player’s) expected value for this game of chance. Based on this expected value, do you think this would be...
Expected Value in Games. Find the expected value​ (to you) of the described game. You are...
Expected Value in Games. Find the expected value​ (to you) of the described game. You are given 7 to 1 odds against rolling a double number​ (for example, two 1s or two​ 2s) with the roll of two fair​ dice, meaning you win​ $7 if you succeed and you lose​ $1 if you fail. Would you expect to win or lose money in 1​ game? In 100​ games? Explain
My friend and I are playing a gambling game in which we each roll a die....
My friend and I are playing a gambling game in which we each roll a die. We then compare the numbers on the two dice to determine the outcome. If my roll is larger, I win $1 and my friend loses $1. If her roll is larger, I lose $1 and she wins $1. And if our two rolls are equal, we both don’t win or lose any money. (a) Write your answers as simplified fractions: What is the chance...
You play a gambling game with a friend in which you roll a die. If a...
You play a gambling game with a friend in which you roll a die. If a 1 or 2 comes up, you win $8. How much should you lose on any other outcome in order to make this a fair game?
Critically evaluate the following statement: “Playing the stock market is like gambling. Such speculative investing has...
Critically evaluate the following statement: “Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.”
Imagine yourself at a fair playing one of the midway games. Pick a game and calculate...
Imagine yourself at a fair playing one of the midway games. Pick a game and calculate the expected value and post your results along with how you calculated them. For example, you may decide to throw a basketball to try to win a $10 bear. You paid $2.00 for three shots. What is the expected value? (Please do not use this example in your answer)
Imagine yourself at a fair playing one of the midway games. Pick a game and calculate...
Imagine yourself at a fair playing one of the midway games. Pick a game and calculate the expected value and post your results along with how you calculated them. For example, you may decide to throw a basketball to try to win a $10 bear. You paid $2.00 for three shots. What is the expected value? (Please do not use this example in your answer).
Imagine yourself at a fair playing one of the midway games. Pick a game and calculate...
Imagine yourself at a fair playing one of the midway games. Pick a game and calculate the expected value and post your results along with how you calculated them. For example, you may decide to throw a basketball to try to win a $10 bear. You paid $2.00 for three shots. What is the expected value? (Please do not use this example in your answer).
A thief and a security guard are playing a simultaneous game. The thief will choose whether...
A thief and a security guard are playing a simultaneous game. The thief will choose whether or not to steal, while the guard will choose whether or not to be vigilant. If the thief steals and the security guard is vigilant, the thief gets caught and suffers a loss of 20, while the security guard gets a bonus worth 15. However, if the thief steals and the security guard is not vigilant, the thief does not get caught and gains...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT