Question

Ricardo comes up with his own casino game.You draw a card from a standard deck.If you pick a heart, you win $10.If you pick a face card that is not a heart, you win $8.If you pick any other card you lose $6.What is your expected return with its standard deviation?

Answer 1

Answer:

Total number of cards in a standard deck of card=52

As deck of card contain 13 club +13 heart +13 spade+13 Diamond.

P(Diamond)=13/52  =1/4

If the card is not diamond then

P(not diamond)=39/52=3/4

Since after drawing card is not replaced

P ( second Diamond)=12/51

now if second card is not Diamond.then

P(non diamond)=39/51

Chances of your  winning i.e both cards are diamonds=1/4×12/51=1/17=0.0588..(approx)

chances of your friend winning=1/4×39/51=[1/4]×[13/17]=13/68=0.1911..(approx)

Your friend has got better chance to win because there are more chances that both the cards are not Diamonds.