Asked by Kayla
Roulette is a well known game in which a mechanical device randomly selects one of 38 equally likely numbers. IF a player decides to play by choosing a number, he gains $35 if his number is selected by the device. If any other number is selceted he loses $1. Calculate the expected value and decide if this is a fair game. (Show the probablility distribution)
Ok so heres i think you do it?
(1/38)(35) + (-1)(37/38)
=-.05
So its not fair the expected value is negative??
Ok so heres i think you do it?
(1/38)(35) + (-1)(37/38)
=-.05
So its not fair the expected value is negative??
Answers
Answered by
PsyDAG
It's "fair," but the odds are not in favor of the player. That is what makes casinos so profitable.
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