You own a Roulette Wheel, which has 37 (European Version) equally distributed parts, each has a number number associated. 0 is green, the rest 36 includes 18 red and 18 black. The money you have to pay to the gambler for hitting green, red and black are 10, 1 and 2 dollars respectively. How much you have to charge per play in order to make sure you will make money?

To expect a profit in the long run, we have to charge more than $1.73 per play.

Step-by-step explanation:

We hace a roulette wit 37 slots.

One is green, eighteen are red and eighteen are black.

The expected pay for the gambler can be calculated as the sum of the probability of getting green, red or black multiplied by the respective pay.

If $1.73 per play is the expected pay that will receive the gambler, we have to charge at least this amount to make sure we will make a profit in the long run.

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.

there is no points to select.

step-by-step explanation: