Question

Suppose that you and a friend are playing cards and decide to make a bet. If you draw two face cards, where a face card is a Jack, a Queen, or a King, in succession from a standard deck of 52 cards replacing the first card, you win $50. Otherwise, you pay your friend $20. What is the expected value of your bet? Round your answer to the nearest cent, if necessary.

Answer 1

The expected value of your bet will be the negative $16.27 that mean loses.

What is the binomial distribution?

Binomial distributions consist of n independent Bernoulli trials.

The expected value will be

E(X) = np

Suppose that you and a friend are playing cards and decide to make a bet.

If you draw two face cards, where a face card is a Jack, a Queen, or a King, in succession from a standard deck of 52 cards replacing the first card, you win $50.

Otherwise, you pay your friend $20.

Then the probability of winning will be

p = (12 / 52)(12 / 52)

p = 9 / 169

Then the probability of loosing will be

q = 1 – p

q = 1 – 9/169

q = 160 / 169

Then the expected value will be

E(x) = (9/169) x 50 + (160/169) x (-20)

E(x) = -$16.27

Learn more about binomial distribution here:

brainly.com/question/13609688

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