you bet $5 in a game and there is a 251/ 495 probability that you wil lose that $5 and 244/495 probabilty taht you will win that you will win $5. given that your expected value is -7.07 cents, how much would you lose in the long run?
this is my working:
1st round: win -7.07 cents
2nd rounnd: win -7.07 cents
nth round: win -7.07 cents
thus the answer should be a GP of 7.07 /( 1- 7.07) ...
but my answer in my notes states that it is 1.4 cents.
may i know where i have gone wrong? thanks!