At the roulette table, black comes up six times in a row. The gambler thinks, “Since half the time black comes up and half the time red comes up, the wheel is due to land on red,” and bets on red. This is the gambler’s fallacy.
Why is the gambler wrong? Isn’t it true that half the time the wheel will come up black and half the time it will come up red? These are some loaded questions. It is true that given an infinite number of spins of the roulette wheel, red and black will each come up half the time. Even in only a few spins we expect the wheel to come up red and black relatively equally. However, this certainly doesn’t happen every time. At any given point in time, it just as likely to spin a red as it is to spin a black, regardless of how the previous turns came up. That is, the probability function is memoryless.
So why is it that people expect the wheel to ‘even itself out’?