May I please receive help
1 answer:
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Answer:
a) -0.1536
b) 0.1536
c) North has the advantage in this game
Step-by-step explanation:
We can calculate the probability as:
P(Face card) =
P(Non-face card) =
" If Kyd selects a face card, North pays him $6. If Kyd selects any other type of card, he pays North $2."
a) Kyd's expected value for this game
We can write the probability distribution for Kyd as:
Event: Face Card Non-face Card
x: +6 -2
P(x): 0.2308 0.7692
Expected value for Kyd is -0.1536
b) North's expected value for this game
We can write the probability distribution for North as:
Event: Face Card Non-face Card
x: -6 +2
P(x): 0.2308 0.7692
Expected value for North is 0.1536
c) Thus, North has the advantage in this game as the expected value for North is greater than the expected value for Kyd.