Question

if you draw two clubs on two consecutive draws with replacement from a standard deck of cards you win $9. Otherwise payment me $4.Question: If you played this game 753 times how much would you expect to win or lose? Round the answer to two decimal places. Losses must be expressed as negative values. Answer: $________

Answer 1

if you draw two clubs on two consecutive draws with replacement from a standard deck of cards you win $9. Otherwise payment me $4.



Question: If you played this game 753 times how much would you expect to win or lose? Round the answer to two decimal places. Losses must be expressed as negative values.

Remember that

The expected value is the probability of winning multiplied by the value you get when you win, plus the probability of losing multiplied by the value you get when you lose (which is negative as it is a loss).

we have that

the probability of drawing one club is

P=13/52

the probability of drawing two clubs on two consecutive draws is

P=(13/52)*(13/52)=0.0625

expected value=0.0625*$9-(1-0.0625)*4

expected value=0.5625-3.75=-$3.1875

Multiply by 753 times

-3.1875*753=-$2,400.19

therefore

the answer is

you expect to lose $2,400.19