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diamong [38]
3 years ago
10

If you draw a card with a value of three or less from a standard deck of cards, I will pay you $43, If not, you pay me $11 (Aces

are considered the highest card in the deck.) Step 1 of 2 : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values
Mathematics
1 answer:
mrs_skeptik [129]3 years ago
8 0

Answer:

$1.46

Step-by-step explanation:

Required cards for winning :

1's, 2's and 3's

There are 4 cards of each in a total of 52 cards ;

Therefore, number of winning cards ;

(4 * 3) = 12 cards

Hence,

P(winning) = 12 / 52 = 3 / 13

P(not winning) = 1 - 3 /13 = (13 - 3) / 13 = 10/13

Earning (X)

Amount earned for winning = $43

Amount lost for not winning = $11

X ___ $43 ______ - $11

P(X) _ 3/13 _______ 10/13

Expected value, E(X) = ΣX*P(X)

Σ(X) = (43 * 3/13) + (-11 * 10/13)

E(X) = 9.9230769 - 8.4615384

E(X) = 1.4615385

E(X) = $1.46

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8 0
4 years ago
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<span>Martin deposits $200 in a savings account that earns 5% annual interest.

year         interest                       balance

1              200 * 5%                    200(1.05)

2              200(1.05) * 5%          200(1.05)^2

3              200(1.05)^2*5%        200(1.05)^3

y                                                200(1.05)^y

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four years later, cary deposits $200 in an account earning the same interest.

</span>
<span><span>year         interest                       balance

5              200 * 5%                    200(1.05)

6              200(1.05) * 5%          200(1.05)^2

7             200(1.05)^2*5%        200(1.05)^3

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</span>
Answer:
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