Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards
1 answer:
Answer:
The expected value is $-2.41.
Step-by-step explanation:
Consider the provided information.
There are 52 cards in a deck out of which 13 are spades.
The probability that both cards are spade is
If both cards are spades, your friend will pay you $39. Therefore,
The probability that both cards are not spade is:
If both cards are not spades then you have to pay your friend $5. Therefore,
Here, negative sign represents the losses.
The expected value of your bet is:
2.2932-4.706 = -2.4128
Hence, the expected value is $-2.41.
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