The deck of 52 cards contains 13 hearts. Here is another wager: Draw one card at random from the
deck. If the card drawn is a heart, you win $\$ 2$ . Otherwise, you lose $\$ 1$ . Compare this wager (call it Wager 2 ) with that of the previous exercise (call it Wager 1 ). Which one should you prefer?
(a) Wager 1 , because it has a higher expected value.
(b) Wager $2,$ because it has a higher expected value.
(c) Wager 1 , because it has a higher probability of winning.
(d) Wager 2 , because it has a higher probability of winning.
(e) Both wagers are equally favorable.