ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Players would draw a card from a standard 52 card deck. Whatever card they drew determined what they won. If they draw a face card (Jack, King, Queen) then they win $5. If they draw an Ace, they win $15. For all other cards, they win nothing.
A. Fill out the probability distribution table with the probabilities of each possible outcome for this game. Round decimals to four places.
| x | $15 | $5 | $0 |
| P(x) |
B. What is the expected value of the distribution above? (Round to the nearest cent, two decimal places.)
C. If players were charged $2 per game, would they make and average profit on the games over time, or would they take an average loss over time?
D. If players were charged $3 per game, would they make and average profit on the games over time, or would they take an average loss over time?
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