SOLUTION: Mike and Dave play the following game, Mike picks a card from a deck of cards, if he selects a club, Dave, gives him $4.00 if not, he gives Dave $2.00 Determine Mike's expectati

Algebra ->  Probability-and-statistics -> SOLUTION: Mike and Dave play the following game, Mike picks a card from a deck of cards, if he selects a club, Dave, gives him $4.00 if not, he gives Dave $2.00 Determine Mike's expectati      Log On


   

Question 849522: Mike and Dave play the following game, Mike picks a card from a deck of cards, if he selects a club, Dave, gives him $4.00 if not, he gives Dave $2.00
Determine Mike's expectations.
determine Dave's expectations.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

Mike, win $4 if Club is drawn.  Otherwise: Loses $2 .   

P(Club) = 13/52 = 1/4

E(Mike) = $4(1/4) - $2(3/4) = $1 - $1.50 = -$0.50

E(Dave) = $2(3/4) -  $4(1/4)= $1.50 - $1 = $0.50