John Would Like to Place a Two Dollar Bet on His

Short Answer

John would like to place a two dollar bet on his favorite racehorse, Black Velvet. He can bet that Black Velvet will win or show (finish in the top three horses). If he bets correctly that Black Velvet wins, he wins $20. If he bets correctly that Black Velvet shows, he wins $7. John figures Black Velvet has a 20% chance of winning and a 70% chance of showing. If X is the amount of money John wins if he bets Black Velvet will win and Y is the amount of money he wins if Black Velvet will show, find E(X) and E(Y) . Enter just two real numbers rounded off to two decimal places in the order given above representing dollars (no units).