The expected value of your bet will be the negative $16.27 that mean loses.
<h3>What is the
binomial distribution?</h3>
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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