MATH STATICTS 2020

Question

If you draw a card with a value of five or less from a standard deck of cards, I will pay you $20.  If not, you pay me $5$.  (Aces are considered the highest card in the deck.)

Step 1 of 2 :  

Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

Answer 1

20*(4/52) + (-5)*(48/52) = -3.07

The expected value is -$3.07