There are 40 slots in a roulette wheel,19 are red, 19 are black, and 2 are green. if you place a $1 bet on red and win, you get $2( your original point $1 and an additional $1) returned. what is the expected value of a $1.00 bet on red.
To determine the expected value of a $1.00 bet on red, we need to calculate the probability of winning and losing, as well as the corresponding payouts.
In this case, there are 19 red slots out of a total of 40, meaning the probability of winning a bet on red is 19/40. If you win, you receive $2.00, which includes your original $1.00 bet plus an additional $1.00.
To calculate the expected value, we multiply the probability of winning by the corresponding payout and subtract the probability of losing multiplied by the amount bet.
Expected Value = (Probability of Winning * Payout for Winning) - (Probability of Losing * Amount Bet)
Expected Value = (19/40 * $2.00) - (21/40 * $1.00)
Simplifying this equation, we get:
Expected Value = $0.95 - $0.525
Expected Value = $0.425
Therefore, the expected value of a $1.00 bet on red is $0.425.