SOLUTION: Mike and Dave play the following game. Mike picks from the deck of cards. If he draws a heart, Dave gives him $5. If not he gives Dave $2. A. Determine mikes expectation B. D

Question 295755: Mike and Dave play the following game. Mike picks from the deck of cards. If he draws a heart, Dave gives him $5. If not he gives Dave $2.
A. Determine mikes expectation
B. Determine Daves expectation
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Mike and Dave play the following game. Mike picks from the deck of cards. If he draws a heart, Dave gives him $5. If not he gives Dave $2.
----
Mikes random number gain: 5, -2
A. Determine mikes expectation
M[E(x)] = (1/4)5 + (3/4)-2 = 5/4-6/4 = -1/4 or -$0.25
---------------------------------------------------------
B. Determine Daves expectation
Daves random number gain: 2 , -5
D[E(x)] = (3/4)2 + (1/4)(-5) = 6/4 -5/4 = +$0.25
===================================================
Cheers,
Stan H.
===================================================

RELATED QUESTIONS
mike and dave play the following game. mike picks a card from a deck of cards if he... (answered by jorel1380)

Mike and Dave play the following game, Mike picks a card from a deck of cards, if he... (answered by ewatrrr)

Pick a card: Mike and Dave play the following game. Mike picks a card from a deck of... (answered by Edwin McCravy)

Dawn and Mike play the following game. Dawn picks a card from a deck of cards. If she... (answered by Boreal)

Dawn and Mike play the following game. Dawn picks a card from a deck of cards. If she... (answered by Fombitz)

In a gambling game a man is paid $3 if he draws a jack or queen and $5 if he draws a king (answered by Edwin McCravy)

mike and dave are roommates. one day mike wakes up and goes for his morning run. He runs... (answered by ankor@dixie-net.com)

when joe drives to school he picks up his friend dave dave lives directly south of joe.... (answered by addingup)

Mark draws one card from a standard deck of 52. He receives $0.50 for a heart and $0.70... (answered by greenestamps)