You are playing roulette in Las Vegas and bet 5 on the numbe

You are playing roulette in Las Vegas and bet $5 on the number 7. The probability of winning is 1/38, and the payoff odds are given as 35:1 Find the actual odds against the outcome of number 7.

B. If the casino were not operating for profit, how would the payoff odds compare to the acutal odds against the outcome of number 7.

Solution

A roulette has 18 red slots and 18 black solts with alternative numbers from 1 to 36. additionally there are two more slots in green numbered as 0 and 00. The player not allowed to bet on these green numbers.

The actual odds against the outcome of number 7 is 37:1

. If the casino were not operating for profit, then the expected value should be \'0\'.

the odds for this situavation is 35:1