Question 8.111

80. In Example 22 (page 378), we saw that a $1 bet on red has a mean outcome of . It turns out not all $1 bets in American roulette have the same mean outcome. The “five-number bet” pays an additional $6 if one of those five numbers comes up—otherwise, the player loses his $1.

  1. Find the expected value for this five-number bet.
  2. Is this five-number bet better or worse than a bet on red?