Consider the following game. You pick a card from a deck and each time you select an ace, you get $260. For all other cards you must pay $13. This game is a fair bet.

Question

Quizplus · Accepted Answer

In a standard deck of 52 cards, there are 4 aces. The expected value of the game is calculated as (4/52)*$260 + (48/52)*(-$13) = $20 - $12 = $8. Since you expect to win more than you lose on average, the game is not a fair bet; it's in the player's favor.

Consider the Following Game