Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards without replacement from a standard deck. If both cards are clubs, your friend will pay you $403. Otherwise, you have to pay your friend $24 What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards without replacement from a standard deck. If both cards are clubs, your friend will pay you $403. Otherwise, you have to pay your friend $24
What is the
There are 52 cards in standard deck.
Out of 52 cards 13 are club cards.
Two cards are drawn without replacement.
You win $403 if both cards are clubs. Otherwise, you loss $24
P( win ) = P( both cards are club ) = (13/52)*(12/51) = 0.058824
P( loss ) = 1 - 0.058824 = 0.941176
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