Question

In the game of​ roulette, when a player gives the casino ​$7 for a bet on the number 20​, the player has a StartFraction 37 Over 38 EndFraction probability of losing ​$7 and a StartFraction 1 Over 38 EndFraction probability of making a net gain of ​$245. ​(The prize is ​$252​, but the​ player's ​$7 bet is not​ returned, so the net gain is ​$245​.) If a player bets ​$7 that the outcome is an odd​ number, the probability of losing ​$7 is StartFraction 20 Over 38 EndFraction and the probability of making a net gain of ​$7 is StartFraction 18 Over 38 EndFraction . ​(If a player bets ​$7 on an odd number and​ win, the player is given ​$14 that includes the​ bet, so the net gain is ​$7​.) Complete parts​ (a) through​ (c) below. a. If a player bets ​$7 on the number 20​, what is the​ player's expected​ value? The expected value is nothing dollars. ​(Round to the nearest cent as​ needed.) b. If a player bets ​$7 that the outcome is an odd​ number, what is the​ player's expected​ value? The expected value is nothing dollars. ​(Round to the nearest cent as​ needed.) c. Is the best option to bet on 20​, to bet on​ odd, or not to​ bet? Why?.

Answer 1