Question

A wheel has 38 numbers, 1, 2, 3, . . . , 38. A player picks a number and bets $20. The wheel is spun, and if the player’s number results, he or she is paid $700 (and gets to keep the $20 bet). If another number results, the house keeps the $20. Suppose typical player bets on 60 spins per hour. What is the expected net gain per hour for the house on each player?    

A. $63                                   

B. $43                                    

C. $38

D. $20                                   

E. –$20

Answer 1

For 60 spins the expected lost is (60*1.052) =$63.15