OpenStudy (anonymous):

Graham is in a casino and decides that he will bet on only even numbers in a card game. An ace is assumed to be the number 1. The game is played with a regular deck of 52 cards. The house rules are that if the card picked is an even number, Graham’s money doubles. If it is an odd number, Graham loses his money. Also, if the card picked is a face card (jack, queen, or king), the dealer replaces the card and picks again. Is this bet a fair one? Why?

3 years ago
OpenStudy (anonymous):

This is not a fair bet because there is a probability of that the card picked is a face card. This is not a fair bet because the color of the numbered cards has not been taken into consideration. This is a fair bet because the probabilities of getting an odd number or an even number are not the same. This is a fair bet because the expected value for one play of the game is zero. This is not a fair bet because the casino makes a profit on the odd numbers.

3 years ago
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