In: Statistics and Probability
In a gambling game a person draws a single card from an ordinary 52-card playing deck. A person is paid $15 for drawing a jack or a queen and $5 for drawing a king or an ace. A person who draws any other card pays $4. If a person plays this game, what is the expected gain?
Solution
A person who draws any other card pays $4. If a person plays this game, what is the expected gain?
Let y be the money which paid or pays :
Then
Then
Therefore.