When playing roulette at a casino, a gambler is trying to decide whether to bet $20 on the number 27 or to bet $20 that the outcome is any one of the five possibilities 00, 0, 1, 2, or 3. The gambler knows that the expected value of the $20 bet for a single number is −$1.05. For the $20 bet that the outcome is 00, 0, 1, 2, or 3, there is a probability of 5 38 of making a net profit of $100 and a 33 38 probability of losing $20.

When playing roulette at a casino a gambler is trying to decide whether to bet 20 on the number 27 or to bet 20 that the outcome is any one of the five possibil class=