One famous example of the law of averages in gambling is called the Gambler's Fallacy, which is to believe a losing streak will "even out" in the end. Suppose you are playing an American roulette (18 red spots, 18 black spots, and 2 green spots) and you always bet on red. If you have lost 50 times in a row with every ball landing on black or green, how does the law of average apply here? a) If you stay at the wheel for an infinite amount of spins, eventually the spins will even out to one-third red, one-third black, and one-third green.
b) The law of average says the probability for the next spin to land on black is close to 100%.
c) If you stay at the wheel for an infinite amount of spins, you will eventually see as many red spins as black spins.
d) The law of average says the probability for the next spin to land on red is higher than 50%.