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Math Help - Probability question

  1. #1
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    Probability question

    When you give the Venetian casino in Las Vegas $5 for a bet on the number 7 in roulette, you have a 37/38 probability of losing $5 and you have a 1/38 probability of making a net gain of $175.

    I did $-5 x 37/38(.974) = -4.87
    I did $5 x 1/38(.026) = + 0.13
    = -4.74. The answer is -. 26 cents. What did I do wrong?
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  2. #2
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    Hello, rowdy3!

    When you give the Venetian casino in Las Vegas $5 for a bet on the number 7 in roulette,
    you have a \tfrac{37}{38} probability of losing $5
    and you have a \tfrac{1}{38} probability of making a net gain of $175.

    I did: . (-5)\times \frac{37}{38} \:\approx\: -4,87

    I did: .  5 \times  \frac{1}{38} \:\approx\:+0.13
    . - . . . {\color{red}\uparrow}

    The answer is -\$0.26
    What did I do wrong?

    \begin{array}{cccc}\text{We lose \$5 with probability }\tfrac{37}{38} & (-5)\left(\tfrac{37}{38}\right) &\approx& -\$4.87 \\ \\[-3mm]<br /> <br />
\text{We win {\color{red}\$175} with probability }\tfrac{1}{38} & (+175)\left(\tfrac{1}{38}\right) &\approx& +\$4.61 \end{array}

    Got it?

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  3. #3
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    thank you very much.
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