Question

Suppose a person offers to play a game with you. In this game, when you draw a card from a standard 52-card deck, if the card is a face card you win "$2, and if the card is anything else you lose $1". If you agree to play the game, what is your expected gain or loss (in dollars) per game? (Recall that there are 12 face cards in a standard 52-card deck. Round your answer to two decimal places.) $

Answer 1

Answer:

Your expected loss per game is of $0.31.

Step-by-step explanation:

In a standard 52-card deck, we have that:

There are 12 face cards.

What is your expected gain or loss (in dollars) per game?

12/52 probability of winning $2.

1 - 12/52 = 52/52 - 12/52 = 40/52 probability of losing $1. So

$E = \frac{12}{52}*2 - \frac{40}{52}*1 = \frac{24 - 40}{52} = -\frac{16}{52} = -0.31$

Negative, so a loss is expected.

Your expected loss per game is of $0.31.