Help on a Statistics homework question?

If you draw a card with a value of five or less from a standard deck of cards, I will pay you $45. If not, you pay me $16. (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.

1 Answer

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  • 1 month ago

    4 cards at $45 = 180

    9 cards at $16 = 144

    (180 - 144) / 13

    36/13

    2.7692307692

    $2.77 <–––––– expected value

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