Question

If you draw a card with a value of four or less from a standard deck of cards, I will pay you $162. If not, you pay me $45. (Aces are considered the highest card in the deck.) Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

Answer 1

the expected value of the proposition is 2.77

Explanation:

The computation of the expected value of the proposition

= 162p - 45(1 - p)

= 162 × 12 ÷ 52 - 45 × (1 - 12 ÷ 52)

= 2.77

Hence, the expected value of the proposition is 2.77

So we simply do the above calculation so that the expected value could come