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

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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(75887) (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?
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The odds against winning a bet on a red in roulette are 1.01 to 1.
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P(win) = 1/(2.01) ; P(lose) = 1.01/2.01
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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"
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(x-10) -10(1.01) = 0
x = 10 + 10.1 = $20.10
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Cheers,
Stan H.