Extra Credit Puzzle

[bertusgeert 1]

My Finance professor gave us this one to solve over the weekend for extra credit:

You have a friend who likes to play roulette. He bets a $1 on 13 EVERY TIME he plays. (When he wins, he gets $35 + his original investment, which is $1. $35+1= $36 total.)

You want to discourage him from playing, so you offer him a deal. You say:
If you play 36 times in a row and you break even or come out ahead, I will give you $20. However, if you play 36 times in a row and have less than break-even, then you owe me $20.

Is this a good way to discourage your friend from playing the Roulette wheel?

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As jy dom is moet jy bloei!

[unformed 0]

This isn't just a finance problem. This is also a psychology problem and ethics. Gamblers won't quit gambling because you proved them they'll lose.

On the finance side, yes it's a good idea but because it's going to make you a lot of money. Ethically, no i's not, because you don't take advantage of friends stupidity, at least not on financial matters.

This ad space for sale.

[brianfry713 0]

No, the roulette wheel appeals to people who like spinning things and bouncing balls, and don't want to have to think too much. Plus the chance to make 35:1 on a single number bet. If they wanted an even money bet with poor return, they'd be betting odd/even or red/black.

I do like the choice of the number 13.
A good way to discourage someone from playing Roulette is to explain to them, no matter what they do, the return on any bet is 36/38 or 94.7%, a 5.3% house edge. That's for a standard american wheel with 0 and 00. The only bet you really want to avoid is the 0, 00, 1, 2, & 3 five number bet which has an even bigger house edge.

Then teach them how to play blackjack.

[skydiverbrian 0]

***You want to discourage him from playing, so you offer him a deal. You say: I'll break your hands.

In a world full of people, only some want to fly... isn't that crazy! --Seal

[wmw999 2,589]

His finance professor gave him the problem. He probably wants a whole lot of probability and statistics in the answer, and not a whole lot about why people play, or how well their hands work...

Just a thought.

And I totally agree with why people play the roulette wheel. It's entertainment, not business gambling.

Wendy W.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[Programmer 0]

Gambling is a tax on people who didn't pass math.