Question

How to solve this using statcrunch

You draw a card from a deck. If you get a red card, you win nothing. If you get a spade, you win $11. For any club, you get $20 plus an extra $50 for the ace of clubs. a) Create a probability model for the amount you win at this game. b) Find the expected amount you'll win. c) How much would you be willing to pay to play this game? red any other club a) Card Winnings 0 spade 1 1 ace of clubs 70 1. Probability ability 3 (Type exact answers in simplified form.) b) E(winnings) = $ 8.71 (Round to two decimal places as needed.) c) How much should you pay to play this game? O A. Exactly the expected value, because the probability of profitting decreases for larger wagers and the payout decreases for smaller wagers. B. No more than the expected value, because this is the average payout of the game. O C. No more than half of the expected value, because this gives a 50% chance of profitting. OD. As much as you can, because the game has good odds and the payout is proportional to the wager.

Answer 1

X - P. - X; กด.n4 5 Probability of winnings P: 2 = 0x4 + 11x1/4 + 70x/sztrox 3/13 - of 2.75 +1.3461f 4.15384 I E (winning) = 7.711 / c) Here all probability of winning on different but the winning algo diftierent like 0, 11, 10, 20, probability are off, 0.25, 0.01923 0.2307 if winning chances increasing pubesinity dercesing ho the No more than expected velve because this is the vor average poyout of the game, og No more is the the expected valve, because this overage pengout of the game.