Answer:
The expected net winnings for the bet are -$1.0526
Step-by-step explanation:
P(x =+$20) = P(Black outcome) = 18/38
P(x =-$20) = P(red outcome) + P(green outcome)
= 18/38 + 2/38 = 20/38
Hence the probability distribution of x = $20 , P(x) = 18/38
x = -$20, P(x) = 20/38
Expected value of the random variable x is given by ;
miu = Summation [xP(x)] = 20(18/38) - 20( 20/38)
= -$1.0526
hence, the expected net winnings for the bet are -$1.0526
This implies that if a player bet on a very large number of games, the player would on the average lose $1.0526 per single bet
