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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 spades, your friend will pay you $7. Otherwise, you have to pay your friend $2. Step 1 of 2: What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.

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 spades, your friend will pay you $7. Otherwise, you have to pay your friend $2. Step 1 of 2: What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.3P
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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 spades, your friend will pay you $7. Otherwise, you have to pay your friend $2. Step 1 of 2: What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.
Transcribed Image Text: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 spades, your friend will pay you $7. Otherwise, you have to pay your friend $2. Step 1 of 2: What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.
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