Higher or Lower on the Next Card

A dealer shuffles a standard 52 52 -card deck and turns one card face up. Ranks run from ace low (1 1 ) to king (13 13 ); suits are irrelevant. Looking at that card, you call whether the *next* card off the deck will be higher or lower in rank. A tie -- the next card matching the rank of the face-up card -- counts as a loss.

Playing optimally, what is your probability of winning, and what is the fair price to enter a game that pays $1 \$1 on a win and nothing on a loss?

Answer

The worked solution is free with any TraderPrep account.