On a roulette wheel, there are 38 slots numbers 1-36 along with 0 and 00. Half of the slots are red and the other half are black. 0 and 00 are green slots. Let's say that we walk up to a roulette wheel and place a two dollar bet on black. If the ball lands on a black slot we get our original bet back (2) plus another two dollars for winning. Of course, if the ball lands on a red or green slot we lose our 2 bet. What will be our expected gain? How far will we be typically off by our expected gain?
1) On average, a two dollar bet will be lose 0.11 and this will be typically off by 2.00.
2) On average, a two dollar bet will be gain 0.11 and this will be typically off by 2.00.
3) On average, a two dollar bet will be lose 0.12 and this will be typically off by 4.00.
4) On average, a two dollar bet will be gain 0.11 and this will be typically off by 2.00.