In the game of roulette, a player can place a $5 bet on the number 11 and have a startfraction 1 over 38 endfraction probability of winning. if the metal ball lands on 11, the player gets to keep the $5 paid to play the game and the player is awarded an additional $175. otherwise, the player is awarded nothing and the casino takes the player's $5. 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?
Accepted Solution
A:
we know that P(winning) = 1/38 P(losing) = 1-1/38 = 37/38 Expected value = 175*1/38 - 5*37/38 175/38 - 185/38 = - 10/38 =-$0.2632
the answer part A) is The player's expected value is -$0.2632 ( is losing)
b) if you played the game 1000 times, how much would you expect to lose? -$0.2632*1000=-$263.20