Probability question

Z Statistic·6/5/2015, 2:13:28 AM·1 votes·237 views

I don't remember how to deal with negative binomial PDFs and I'm far too lazy/tired to look it up, so I'm hoping one of your guys knows the answer (with correct mathematical proof).

You're at a casino playing roulette. You decide to prioritize fun over attempting to make a profit like a responsible gambler so you split your X dollars into N bets of even value. You only play one bet per roulette spin. Because you're responsible, you will only play AT MOST N times.

You have come up with two strategies since you wanna win big money:

  1. Bet on Black 17 until you win once or lose N times.
  2. Bet on Black 17 N times

(Probability of winning = 1/38 with a return of 36*bet)

What is the expected value of 1 and 2 in terms of X and N?

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