Consider the game of roulette, a well-known casino game. Originating in late seventeenth-century France, this game is typically played on a wheel with 38 slots numbered 00, 0, and 1 through 36, although not in sequence. The 00 and 0 slots are green, and all other slots alternate in color, black/red/black (and so on), enabling players to place wagers many different ways. The wheel is spun, then a ball is dropped onto the wheel and is equally likely to end up in any one of the 38 slots.
Reasoning Forum
Maxine is a little less adventurous and hopes to win more often (and lose less often) so she repeatedly places her $1 bet on red (which has more ways to win but a winning payoff of only 1:1, $1 won for every $1 bet). Should she expect to break even by playing this way since the payoff is 1:1? Does she have a 50/50 chance of winning each time the wheel is spun? What is the expected net gain? Explain.