Determine the probability distribution of random variable

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An American roulette wheel contains 38 numbers: 18 are red, 18 are black, and 2 are green. When the roulette wheel is spun, the ball is equally likely to land on any of the 38 numbers. Suppose that you bet $1 on red. If the ball lands on a red number, you win $1; otherwise you lose $1. Let X be the amount you win on your $1 bet.

a) Determine the probability distribution of the random variable, X.

b) Find the expected value of the random variable, X. Interpret the expected value.

c) Approximately how much would you expect to lose if you bet $1 on red 100 times? 1,000 times?

d) Is this game fair for the players? Explain.

Reference no: EM132852009

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