Keno Question

I have a question about the return expectations for Keno at the site ml).

The expected return on the 1 Spot Game is given as 3*(1/4) or 75%. This appears to be different than the expected value of the bet. In this game, a winning $1 bet profits $2 ($3-$1). I believe the expected value of a 1 Spot Game is therefore (3-1)*(1/4) or 50%.

If I played the $1 One Spot game a million times, I should expect to have $500,000 (not $750,000). Is that correct?

Quote: erict12110

I have a question about the return expectations for Keno at the site ml).

The expected return on the 1 Spot Game is given as 3*(1/4) or 75%. This appears to be different than the expected value of the bet. In this game, a winning $1 bet profits $2 ($3-$1). I believe the expected value of a 1 Spot Game is therefore (3-1)*(1/4) or 50%.

If I played the $1 One Spot game a million times, I should expect to have $500,000 (not $750,000). Is that correct?

No, these appear to be the same to me:

You will win $2 25% of the time and lose $1 75% of the time. So, ev = 2*0.25-1*0.75 = -0.25 . This is equivalent to a 75% return.

1/4 of the time the game RETURNs 3 units.