Answer:
Lose $0.05
Step-by-step explanation:
There are 38 possible spots on the roulette wheel (numbers 1 to 36, 0 and 00).
If the player can choose four numbers on single $1 bet, his chances of winning (W) and losing (L) are as follows:
[tex]P(W) = \frac{4}{38} \\P(L) = 1-P(W) = 1-\frac{4}{38} \\P(L) = \frac{34}{38}[/tex]
The expected value of the bet is given by the probability of winning multiplied by the payout ($8), minus the probability of losing multiplied by the bet cost ($1)
[tex]EV=\frac{4}{38}*\$8 -\frac{34}{38}*\$1\\EV= -\$0.05[/tex]
On each bet, the player is expected to lose 5 cents ($0.05).
