SOLUTION: If you draw a card with a value of 3 or less from a standard deck of cards i will pay you $6. if not you pay me $5. (aces are considered the highest card in the deck). find the exp

Algebra ->  Probability-and-statistics -> SOLUTION: If you draw a card with a value of 3 or less from a standard deck of cards i will pay you $6. if not you pay me $5. (aces are considered the highest card in the deck). find the exp      Log On


   

Question 1149595: If you draw a card with a value of 3 or less from a standard deck of cards i will pay you $6. if not you pay me $5. (aces are considered the highest card in the deck). find the expected value of the proposition. round to 2 decimal places losses must be expressed as negative values.
Found 2 solutions by greenestamps, ikleyn:
Answer by greenestamps(13203) About Me  (Show Source):
You can put this solution on YOUR website!


Because in this game aces are considered the highest card....

P(3 or less) = P(2 or 3) = 8/52 = 2/13

P(greater than 3) = 44/52 = 11/13

Expected value (from the standpoint of the PLAYER):

%282%2F13%29%2A%28%2B6%29%2B%2811%2F13%29%2A%28-5%29+=+%2812-55%29%2F13+=+-43%2F13

Answer: -43/13 dollars, or -$3.31 to the nearest cent.

Answer by ikleyn(52814) About Me  (Show Source):