Question

Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards without replacement from a standard deck. If both cards are clubs, your friend will pay you $531. Otherwise, you have to pay your friend $32. How much would you expect to win or lose?

Answer 1

Answer: I will expect to win $1.1156 for the bet.

Step-by-step explanation:

probability 2 cards are clubs (13/52)*(12/51) = (0.25) * (0.2352)= 0.05882

other 1-0.05882= 0.94118

Expected value= $531 * 0.05882 - $32 (0.94118) = 31.2334- 30.1178

Expected value = $ 1,1156. Making this bet 100 times you will make $111.56