Question

If a $2 bet is placed for a chance to win $500 for drawing a 10 of any suit from a standard deck of cards, what is the value of expectation?
A. $2
B. $250
C. $125
D. $500

Answer 1

P(winning) = 4/52 = 1/13 P(losing) = 48/52 = 12/13 Expected value = 1/13 ($498) + 12/13 (−$2) = $498/13 − $24/13 = $474/13 = $36.46