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 diamonds, your friend will pay you $810. Otherwise, you have to pay your friend $49. Step 2 of 2 : If this same bet is made 914 times, how much would you expect to win or lose

Answer 1

Explanation:

We all know that there are 52 cards prszent in a deck out of which 13 are diamonds. Hence, the probability that both cards are spade is

13/52 * 12/51 =

0.25 * 0.235 =

0.0588

If both cards turn out to be diamonds, the friend pays $810 which is

$810 * 0.0588 = $47.628

On the other hand, the probability that both cards isn't a diamond is simply the negation of the probability that it is a diamond.

1 - 0.0588 = 0.9412

And you would have to pay your friend

$49 * 0.9412 = -$46.12, with the prefixed negative sign telling us that it's a lost bet.