Find the expected value.
-In a large casino, the house wins on one of its games with a probability of 50.9%. All bets are 1 : 1 . If you win, you gain the amount you bet; if you lose, you lose the amount you bet. If you play 140
Games in an evening, betting $1 each time, how much should you expect to win or lose?

Question

Quizplus · Accepted Answer

The expected value can be calculated by multiplying the outcomes by their probabilities and summing these products. Here, the probability of winning is 49.1% (100% - 50.9%), and the probability of losing is 50.9%. For each game, the expected value is (0.491 * $1) + (-0.509 * $1) = -$0.018. Over 140 games, the expected value is 140 * -$0.018 = -$2.52, meaning you should expect to lose $2.52.

Find the Expected Value