Question 130590: A card is drawn from a standard 52-card deck. Calculate your expected value for the game. You pay $10 to play the game, which must be subtracted from your winnings. a heart is drawn, you win $20, otherwise you lose your $10.
What is the expected value?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A card is drawn from a standard 52-card deck. Calculate your expected value for the game. You pay $10 to play the game, which must be subtracted from your winnings. a heart is drawn, you win $20, otherwise you lose your $10.
What is the expected value?
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Let gain be the random variable, x.
x has values....................... -10..........10.
corresponding probabilities are .....(3/4)......(1/4)
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Expected gain is (3/4)(-10) + (1/4)10 = -7.5 + 2/5 = -5
The expected gain is a loss of $5
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Cheers,
Stan H.
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