00:01
All right, in your question, you're to consider the following scenario.
00:03
And it just says the five number bet.
00:06
Now, done a little research, the five number bet is a specific bet that you can make on a roulette table, which includes betting all at once on the zero -zero position, the zero position, the one, the two, and the three position.
00:27
So the first thing we want to do here to find expected value, is we want to figure out the probability of a win and also a probability of a loss.
00:42
So the probability of a win would be five out of, and then we have to know how many numbers are on a roulette table.
00:54
And there are 36 numbers, or you could say the numbers 1 through 36, and then there's the spot 0 and a spot double zero.
01:05
So there's a total of 38 positions, five out of 38 positions, would be a win.
01:12
A loss then would be 33 out of 38 positions.
01:16
Now the next thing i had to do is look up what the payout is for this bet.
01:22
The payout is 6 to 1.
01:30
Now what that means is when we win if we placed a $1 bet, we win $6.
01:39
That doesn't include your $1 bet because you don't really win that's money you already had, you just bet it.
01:47
So for the expected value, i'm going to say let x equal the possible outcomes in money you would take the probability of a win which is five out of 38 and multiply it to that the value of a win which would be six dollars then we're going to multiply the probability of a loss which is 33 out of 38 to the value of a loss the value of the loss would be a minus one we've lost that one dollar bet okay so then we just type this in our and we'll have our expected value...