Hey everybody I am having trouble with thisproblem: A casino roulette wheel has

Question

Hey everybody I am having trouble with thisproblem:

A casino roulette wheel has 38 slots that arenumbered 1 through 38. You pay $3 to place a bet. If the outcome ofthe roulette spin is a number that is a multiple of 8, you receive$24 (which makes your net again $21); otherwise you lose the $3that you pay to place a bet. What is the expected value of your netgain in this game?

I have the ANSWER -$0.474or 47.4 cents but I need to know how do you get this. Pleaseshow all steps. Will give a Lifesaver. Thanks

Explanation / Answer

E[x] = x*P(x) First, we need to calculate the probability of success. Multiples of 8 less than 38 are: 8, 16, 24, 32. Thus, we have4 chances of success out of 38 possibilities. Now, we can compute the expected value. 4/38 * 21 + 34/38 * -3 -9/19 -.474

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