FIGURE 1. Refer to Figure 1. What is the expectation for the $ $5$ bet on black on a U.S. roulette wheel? Round the answer to the nearest hundredth.
A) $0.42
B) $0.26
C) $0.50
D) $0.34
E) $0.18

Question

FIGURE 1.  Refer to Figure 1. What is the expectation for the $ $5$ bet on black on a U.S. roulette wheel? Round the answer to the nearest hundredth.
A) $0.42 
B) $0.26 
C) $0.50 
D) $0.34 
E) $0.18

Quizplus · Accepted Answer

According to the table in Figure 1, the probability of winning a $5 bet on black in a U.S. roulette wheel is 47.37%. Therefore, the expected value can be calculated as:

Expected value = (Probability of winning * Amount won) - (Probability of losing * Amount lost)
Expected value = (0.4737 * $5) - (0.5263 * $5)
Expected value = $2.3685 - $2.6315
Expected value = -$0.26

Since the expected value is negative, it means that, on average, a player will lose $0.26 for every $5 bet on black. Option B is the best choice, as it represents the closest approximation to the expected value of -$0.26.

FIGURE 1 Refer to Figure 1 555 Bet on Black on a U

FIGURE 1 Refer to Figure 1 $5$ Bet on Black on a U