Exercise

Calculate expected value with one card to come

Suppose that there is just one card left to come, and you know that 8 of the 46 remaining cards in the deck will give you a win (recall that these 8 cards are known as outs). Otherwise, you will lose.

There is currently $50 in the pot, and you are currently facing a $10 bet from your opponent. Assuming no further betting, then, from this point, if you call the bet and win, your profit is $50. If you call the bet and lose, your profit is negative $10.

Instructions

100 XP

Fill in the values to define the vector of probabilities of either winning or losing.
Fill in the values to define the vector of possible dollar outcomes.
Use these two quantities to calculate the expected value of calling the bet.