Variance and mean of profit
Hi, I'm having a little trouble solving this problem. I understand how to solve it for tossing a die because there are values associated it. In this case I get to draw 5 cards from a deck (then immediately replace it) and I receive $4 for every heart drawn. I have to find the mean and variance of my payoff.
I understand the the probablity of drawing a heart is 13/52 but I'm not sure how to calculate the variance and mean of the profit using this information. I think this is a simpler problem than I'm making it but I'm just a little stuck and I'd appreciate any help. Thanks!