SOLUTION: If you draw a card with a value of two or less from a standard deck of cards, I will pay you $16. If not, you pay me $4. (Aces are considered the highest card in the deck.)
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-> SOLUTION: If you draw a card with a value of two or less from a standard deck of cards, I will pay you $16. If not, you pay me $4. (Aces are considered the highest card in the deck.)
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Question 1196467: If you draw a card with a value of two or less from a standard deck of cards, I will pay you $16. If not, you pay me $4. (Aces are considered the highest card in the deck.)
Step 1 of 2 : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
If aces are considered high cards, then "two or less" means only a 2 is a winning draw. The probability of drawing a 2 is 4/52 = 1/13; the probability of drawing anything else is 12/13.
The expected value is the sum of each probability times its associated value:
