SOLUTION: Thirteen playing cards, ace through king, are placed randomly with faces down on a table. The prize for guessing correctly the face of any given card is $5. What would be a fair pr

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Question 258280: Thirteen playing cards, ace through king, are placed randomly with faces down on a table. The prize for guessing correctly the face of any given card is $5. What would be a fair price to pay for a guess?
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A department store wants to sell 13 purses that cost the store 50 dollars each and 30 purses that cost the store 10 dollars each. If all purses are wrapped in 43 identical boxes and if each customer picks a box randomly, find the department store's expected profit if it charges 20 dollars for each box
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A box contains 3 defective bulbs and 10 good bulbs. If 6 bulbs are drawn from the box without replacement, what is the expected number of defective bulbs?
Answer by edjones(8007) About Me  (Show Source):
You can put this solution on YOUR website!
a) Probability of a correct guess is 1/13. The odds against are 12 to 1 meaning one $5
win and 12 losses in 13 tries.
$5/13 or about $.38 is a fair price for a guess because you have to pay .38 for a guess even on your winning guess.
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Ed