Help with Expected Value (EV) HW assignment please: American roulette wheels

Hi there.

I'm taking a Math 104 Applied Mathemtics class. My last class before I graduate with my (A.A.S.) Associates of Applied Science. I need help with this question in my section 4.3 of my textbook please.

Question is:

An American roulette wheel contains slots with numbers from 1 through 36, and slots marked 0 and 00. Eighteen numbers are colored red and eighteen numbers are colored black. The 0 and 00 are colored green. You place a $1 bet on a roulette wheel betting that the result of the spin will be green. If you win, the amount of your winnings is 17.

A. What is the expected value of this bet? Round your answer to the nearest hundredth.

B. What does this expected value mean?

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I seem to be able to understand the rest. Just this question seems to confuse me. I can't figure out at all how the answer is -$0.05 for A. Your help would be greatly appreciated. Just trying to get an A in this class. I'm a month ahead in the class. Just trying to finish off this last 3 sections in the textbook. Thanks for your help.

kevra83 said:

… I need help with this question in my section 4.3 of my textbook please …

An American roulette wheel contains slots with numbers from 1 through 36, and slots marked 0 and 00. Eighteen numbers are colored red and eighteen numbers are colored black. The 0 and 00 are colored green. You place a $1 bet on a roulette wheel betting that the result of the spin will be green. If you win, the amount of your winnings is 17.

A. What is the expected value of this bet? Round your answer to the nearest hundredth.

B. What does this expected value mean?

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… Just trying to get an A in this class …

Click to expand...

Then you must have already looked up 'Expected Value' in your textbook and studied some worked examples.

Next, you calculated from the given information four numbers that need to be substituted into the formula provided by your textbook.

P(Green) = ?

P(Not Green) = ?

Net win if Green = ?

Net win if Not Green = ?

Then, what happened? What values did you get above? In what formula did you use them?

Please show your efforts. :cool:

Also, kindly read the forum guidelines.

Were you able to finish this exercise?

The formula that I had in mind is:

EV = P(Green)*[Net win if Green] + P(Not Green)*[Net win if Not Green]