Part 3 ยท Expected Value
๐ŸŽฏ INTERACTIVE

Expected value

A $100 bet on red. What happens on average?

P(red) = 18/37
P(not red) = 19/37
E = (18/37) ร— (+100) + (19/37) ร— (โˆ’100)
E = (1800 โˆ’ 1900) / 37
E = โˆ’100/37 ~ โˆ’$2.70

On average, you lose $2.70 on every $100 bet

House edge = 1/37 ~ 2.7%

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