An American roulette wheel has numbers 1 through 36, where the even numbers are black and odd
Question:
An American roulette wheel has numbers 1 through 36, where the even numbers are black and odd numbers are red. There are also numbers 0 and 00, which are green. The wheel is spun and a ball will randomly land on one of these 38 numbers. Suppose you plan always to bet $1 on red. If it lands on red, you will gain $1 (payout = $1). If it does not land on red, you will lose $1 (payout = −$1).
a. For one spin of the wheel, what is the expected payout for this game if you bet on red?
b. For one spin of the wheel, what is the standard deviation for the payout if you bet on red?
c. For two spins of the wheel, what is the expected payout if you always bet on red?
d. For two spins of the wheel, what is the standard deviation for the payout if you always bet on red?
Step by Step Answer:
Introduction To Statistical Investigations
ISBN: 9781119683452
2nd Edition
Authors: Beth L.Chance, George W.Cobb, Allan J.Rossman Nathan Tintle, Todd Swanson Soma Roy