f you draw a card with a value of four or less from a standard deck of cards, I will pay you $35. If not, you pay me $7 . (Aces are considered the highest card in the deck.) In the previous step, we identified the two possible values of the payoff amount: x1=35 if you win and x2=7 if you lose. Next, we must calculate the probabilities of winning and losing. To win the bet, you must choose a card with a value of 4 or less. We will use the formula for classical probability to calculate the probability of winning the bet since all possible outcomes are known and are equally likely. The denominator of the probability is the total number of different outcomes for drawing a card from a standard deck of cards and the numerator is the number of different ways there are to draw a card with a value of 4 or less