Question: House Edge in Roulette. The probability of winning when you bet on a single number in roulette is 1 in 38. A $1 bet yields a net gain of $35 if it is a winner.

a. Suppose that you bet $1 on the single number 23. What is your probability of winning? What is the expected value of this bet to you?

b. Suppose that you bet $1 on each of the numbers 8, 13, and 23. What is your probability of winning? What is the expected value of this bet to you? Remember that you lose your bet on the numbers that do not come up.

c. Compare the results of parts a and b. Does the expected value change with the number of numbers on which you bet?