Question

Find the expected payback for a game in which you bet ​$5 on any number from 0 to 499. If your number comes up, you get $1000

Answer 1

E(x) = (499*0 + 1000) / 500 = 2$

5$ + 2$ = 7$

7$ / 5$ = 1,4 => payback ratio = 40%