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On a European roulette wheel with 37 pockets, a bet on one single number pays 35 times the stake as…
Contributed by StemPy LabTry it on paper first. A hint, the key idea and the worked solution are here when you need them.
On a European roulette wheel with pockets, a bet on one single number pays times the stake as profit if the ball lands there, and loses the stake otherwise. A player bets tokens on one number. Find the expected gain of one bet, to four decimal places. Then find the expected total loss after such bets, to two decimal places. Compare the expected gain with that of a token bet on red, which wins tokens with probability .
Need a reminder? The key ideaShow
The worked solution
Have you tried it?
Work it out on paper first. It is fine to get stuck or make a mistake: that is how we learn. When you are ready, go through the solution one step at a time, and check each step against your own.
Step 1. One bet. tokens.
Step 2. 200 bets. tokens lost on average.
Step 3. Red. tokens, the same.
Answer: about tokens a bet and tokens after bets. Both bets have the same expected gain. The single number is far riskier: it wins rarely but a lot.
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