An Answer Page for Exercise 9

Exercise 9

Show that in craps the house edge for a pass line bet is about 1.41%


  Let B = the amount bet ( in dollars ) on the pass line
  Let p = P( win )   =   244 / 495   [ shown in an earlier section ]
 
  Let E = expectation   =   B * p + ( - B ) * ( 1 - p )   =   Bp - B + Bp
  = 2Bp - B = B * ( -1 + 2p )     E / B = -1 + 2p
 
  H = | E / B |   =   | -1 + 2p |   =   | -1 + ( 488 / 495) |
  = | - 7 / 495 |   =   1.41414.... %
  » 1.41 %