In European roulette the wheel is divided into 37 compartments numbered 1 through 36 and 0. (In American roulette there are 38 compartments numbered 1 through 36, 0, and 00.) Find the expected value of the winnings on a $3 bet placed on red in European roulette. Round your answer to the nearest cent.
A) $0.08%
B) - $0.08%
C) - $0.03%
D) $0.03%

Question

Quizplus · Accepted Answer

In European roulette, there are 18 red numbers out of 37 total numbers. The probability of winning is 18/37. If you win, you gain $3, and if you lose, you lose $3. The expected value is calculated as (18/37 * $3) - (19/37 * $3) = -$0.081, which rounds to -$0.08.

In European Roulette the Wheel Is Divided into 37 Compartments