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 $39. otherwise, you have to pay your friend $5.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.

The expected value is $-2.41.

Step-by-step explanation:

Consider the provided information.

There are 52 cards in a deck out of which 13 are spades.

The probability that both cards are spade is

If both cards are spades, your friend will pay you $39. Therefore,

The probability that both cards are not spade is:

If both cards are not spades then you have to pay your friend $5. Therefore,

Here, negative sign represents the losses.

The expected value of your bet is:

2.2932-4.706 = -2.4128

Hence, the expected value is $-2.41.