Suppose you are going to gamble on a roulette wheel where yo

Suppose you are going to gamble on a roulette wheel, where you pay $1.00 to place your bet. (The roulette wheel has thirty-eight equal spaces, eighteen red, eighteen black, and two green.) If the ball falls on the black eight, you win $3.00. Let X = the net winnings.

Find and interpret the expected value:

Find the variance:

Solution