Calculate the expected monetary value of the following bet I

Calculate the expected monetary value of the following bet: In a single-draw card game that costs $5 to play, you win $500 if you draw either a jack or a diamond.

Solution

Consider:

Hence,

E(x) = Sum(xP(x)) = $148.8462 [ANSWER]

x P(x) x P(x)
-5 0.692308 -3.46154
495 0.307692 152.3077
Calculate the expected monetary value of the following bet: In a single-draw card game that costs $5 to play, you win $500 if you draw either a jack or a diamon

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