Question

You bet $50 on 00 in a game of roulette. If the wheel spins 00, you have a net win of $1,750, otherwise you lose the $50. A standard roulette wheel has 38 slots numbered 00, 0, 1, 2, ... , 36. What is the expected profit for one spin of the roulette wheel with this bet?

Answer 1

Answer:

-$2.63

Step-by-step explanation:

Calculation for the expected profit for one spin of the roulette wheel with this bet

Based on the information given you bet $50 on 00 while the standard roulette has 38 possible outcomes which means that the probability or likelihood of getting 00 will be 1/38.

Therefore when we get an 00, we would get the amount of $1,750 with a probability of 1/38 and in a situation where were we get something other than 00 this means we would lose $50 with a probability of 37/38.

Now let find the Expected profit using this formula

Expected profit = sum(probability*value) -sum(probability*value)

Let plug in the formula

Expected profit =($1,750 * 1/38) - ($50 * 37/38)

Expected profit=($1,750*0.026315)-($50×0.973684)

Expected profit= 46.05 - 48.68

Expected profit = - $2.63

Therefore the expected profit for one spin of the roulette wheel with this bet will be -$2.63