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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.