# SOLUTION: If North American casino roulette were fair, how much should it pay to a player who bets \$10 on red and a red number comes up? The odds against winning a bet on a red in roulette a

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: If North American casino roulette were fair, how much should it pay to a player who bets \$10 on red and a red number comes up? The odds against winning a bet on a red in roulette a      Log On

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 Question 268797: If North American casino roulette were fair, how much should it pay to a player who bets \$10 on red and a red number comes up? The odds against winning a bet on a red in roulette are 1.01 to 1. Answer by stanbon(57307)   (Show Source): You can put this solution on YOUR website!If North American casino roulette were fair, how much should it pay to a player who bets \$10 on red and a red number comes up? --------- The odds against winning a bet on a red in roulette are 1.01 to 1. --- P(win) = 1/(2.01) ; P(lose) = 1.01/2.01 --------------------------------------------- Note: If the game is "fair" E(x) = 0 Let "x" be casino payback. Equation: E(x) = winnings(P(win))+(losings)(P(lose)) = 0 (x-10)(1/2.01)+(-10)(1.01/2.01) = 0 Multiply thru by 2.01 and solve for "x" --- (x-10) -10(1.01) = 0 x = 10 + 10.1 = \$20.10 ============================= Cheers, Stan H.