I'm learning binomial distributions and I came across this problem:
Let r.v X be winning from a bet on a split in roulette and Y be be winnings from a bet on red color.
X = 17 (2/38 chance) and -1 (36/38 chance) Y = 1 (18/38 chance) and -1 (20/38 chance)
I calculated the variances for both: Var(X) = 0.4224 and Var(Y) = 0.9972
Now, if I were to play considerable amount of times, would I be better off only betting on a number or only betting on reds?