Question

Consider the following game. The diamonds are taken out of a deck of cards, and are shuffled randomly. You pay $5 to pick one of the diamonds. If you pick the ace of diamonds, you win $20. If you pick the jack, queen, or king, you win $10. However, if you pick any other card, then you don't win any money. What is the expected value of this game? Is it in the player's favor to play this game? Why or why not?

Answer 1

Answer:

It is not in the players favor because there is a 4/13 chance that the player will win money. That"s not even 50%. So its up to the player if they want to take that risk but its a 0.3% chance that the player will win money.

Hope this helps :)