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? .Round your answer to the nearest cent. Enter an expected loss as a negative number. Provide your answer below

Answer 1

Given you bet $50 on 00. and the roulette has 38 possible outcomes. So, the probability of getting 00 is 1/38.

When we get an 00, we get $1750 i.e., we get 1750 with a probability of 1/38.

If we get anything other than 00, we lose $50, i.e., we lose 50 with a probability of 37/38.

So, Expected profit = sum(probability*value) = (1750 * 1/38) - (50 * 37/38) = 46.05 - 48.68 = - $2.63