What is an inside bet?
In roulette, an inside bet is where you put your chips on individual numbers inside the roulette grid.
Because you're focusing on individual numbers, rather than any red number for example, the roulette odds are significantly reduced.
However, with the higher risk comes a greater reward, so your payout would be more generous.
What is an outside bet?
These bets increase your chances of winning on each spin, but pay out less than an inside bet would.
You can also choose to bet on all black or all red numbers, or decide between all odd and all even numbers.
Experiment with different combinations to suit your preference, and remember you're playing free online roulette, so it's all for fun!
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For all the money Amazon.com (AMZN -1.61%) funnels into Prime -- a growing Instant Video library, the addition of music streaming, exclusive products, and, of course, shipping costs -- it may be the only thing enabling Amazon's retail operation to make a profit. And I'm not talking about the fact that Prime members spend more than non-members. Granted, the program wouldn't make sense if they didn't. I'm talking about the fact that Prime subscription revenue is what tips Amazon's operating profit from the red to the black.
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Image source: Amazon.
Revenue from Prime memberships is amortized over the life of the membership, so we must figure out the average number of members throughout the year. If we simply assume linear growth, Amazon had around 38.4 million average members throughout the year. That gives us $3.8 billion in membership revenue, significantly more than Costco's $2.5 billion in membership revenue.
More telling is the fact that Amazon's retail operating income grew by about $1.5 billion year over year, and Prime membership revenue grew by about $1.3 billion using the above estimates.
Why new members cause profits to rise
Amazon Prime has several fixed costs and several variable costs that go along with it. Fixed costs mostly include its cost of content for Prime Instant Video. Variable costs include things like shipping and music streaming. Unlike Costco, Amazon isn't able to send Prime membership fees straight to its bottom line.
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