Question 1120592: In the game of roulette, a player can place a $7 bet on the number 4 and have a 1 Over 38 probability of winning.
If the metal ball lands on 4,the player gets to keep the $7 paid to play the game and the player is awarded an additional $245, Otherwise, the player is awarded nothing and the casino takes the player's $7
What is the expected value of the game to the player? If you played the game 1000 times, how much would you expect to lose? Note that the expected value is the amount, on average, one would expect to gain or lose each game.
The expected value is $_____________.
Answer by greenestamps(13203)   (Show Source):
You can put this solution on YOUR website!
The expected value is the sum of all the different payouts, each multiplied by the probability of the corresponding outcome.
One possible outcome is the ball landing on 4; probability 1/38; payout +245.
The other possible outcome is the ball landing on any other number: probability 37/38, payout -7.
The expected value is
If you played the game 1000 times, the amount you would expect to lose is
 (rounded to the nearest dollar, since each payout is a whole number of dollars).
|
|
|
