Question

Suppose a person offers to play a game with you. In this game, when you draw a card from a standard 52-card deck, if the card is a face card you win "$2, and if the card is anything else you lose $1". If you agree to play the game, what is your expected gain or loss (in dollars) per game? (Recall that there are 12 face cards in a standard 52-card deck. Round your answer to two decimal places.) $

Answer 1

Your expected loss per game is of $0.31.

Explanation:

In a standard 52-card deck, we have that:

There are 12 face cards.

What is your expected gain or loss (in dollars) per game?

12/52 probability of winning $2.

1 - 12/52 = 52/52 - 12/52 = 40/52 probability of losing $1. So

`E = (12)/(52)*2 - (40)/(52)*1 = (24 - 40)/(52) = -(16)/(52) = -0.31`

Negative, so a loss is expected.

Your expected loss per game is of $0.31.