Answer:
The expected return for this bet is $0.05
Step-by-step explanation:
Given that A spinner game has a wheel with the numbers zero through 19 marked in equally spaced slots.
So the Total number of slots in the spinner = 20 [0(1 slot) + 19 = 20 slots]
Now the probability of winning = [tex]\frac{\text{Desired outcome}}{\text{total number of outcomes}}[/tex]
Substituting the values
Probability (winning) =[tex]\frac{1}{20}[/tex]
Winning amount = $19
Expected return for this bet = Winning amount x Probability(winning) - Cost of bet
=>[tex]19 \times \frac{1}{20} - 1[/tex]
=>[tex]19 \times 0.05 - 1[/tex]
=>0.95-1
=> 0.05
