Question 799151: Suppose you play a game in which you make a bet and then draw a card from a deck that includes the standard 52 as well as 2 jokers. If you draw a joker, you keep your bet and win $5. If you draw. Face card, you keep your bet and win $2. And if you draw any other card, you lose your bet. What is your expected gain or loss on this game if your bet is $1?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Suppose you play a game in which you make a bet and then draw a card from a deck that includes the standard 52 as well as 2 jokers. If you draw a joker, you keep your bet and win $5. If you draw. Face card, you keep your bet and win $2. And if you draw any other card, you lose your bet. What is your expected gain or loss on this game if your bet is $1?
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Random gains::: 5.........2.........-1
Probabilities:: 2/54.... 12/54.....40/54
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E(x) = [2*5 + 12*2 - 40]/54 = -6/54 = -1/9 = -0.11 cents
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Cheers,
Stan H.
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