Question

Sarah draws cards from a deck of 52 cards. She receives $.40 for each heart, $.50 for an ace, and $.90 for an ace of hearts. If each draw costs $.15 should she play the game?

Answer 1

expected value=probability*reward

EV=.40*12/52 + .50*4/52 + .90(1/52)
= 1/52 * (4.80+2+.9)=7.60/52=.13

It is a losing game.