Question: In a new card game, you start with a well-shuffled full deck and draw 3 cards without replacement. If you draw 3 hearts, you win
In a new card game, you start with a well-shuffled full deck and draw 3 cards without replacement. If you draw 3 hearts, you win $50. If you draw 3 black cards, you win $25. For any other draws, you win nothing.
(a) Create a probability model for the amount you win at this game, and nd the expected winnings. Also compute the standard deviation of this distribution.
(b) If the game costs $5 to play, what would be the expected value and standard deviation of the net profit (or loss)? (profitt = winnings - cost; X - 5)
(c) If the game costs $5 to play, should you play this game? Explain.
Step by Step Solution
3.32 Rating (161 Votes )
There are 3 Steps involved in it
To create a probability model for the amount you win at this game well consider the possible outcomes and their associated probabilities Draw 3 hearts win 50 There are 13 hearts in a standard deck so ... View full answer
Get step-by-step solutions from verified subject matter experts
