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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.

1 Answer

3 votes

Answer:

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

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