Mike and Dave play the following game. Mike Pickls a card from a deck of cards. If he selects an ace, Dave gives him 5 dollars. If not, he gives Dave 2 dollars. Determine Mikes and Daves expectation
P(Winning $5) = P(Ace) = 4/52 = 1/13
P(Loosing $2) = 1 - 1/13 = 12/13
Expected returns for Mike = $5 (1/13) - $2 (12/13) = - $1.46
Expected returns for Dave = + $1.46
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