Question

Answer this questions for 40 points! :) it is attached.

Answer 1

$5

Explanation:

You need to calculate the expected value of this game.

There are 4 equally likely outcomes:

1. heads-heads

2. heads-tails

3. tails-heads

4. tails-tails

The winnings for each outcome is:

1. heads-heads $20

2. heads-tails $0

3. tails-heads $0

4. tails-tails $0

Each outcome has a 0.25 probability of occurring.

The expected value is the sum of the products of the probability of each outcome and its winnings

expected value = 0.25 * $20 + 0.25 * $0 + 0.25 * $0 + 0.25 * $0

expected value = $5

To be a fair game, each play should cost $5.

Answer 2

im so confused by this question but my only guess would be that since a coin is a 1/2 chance getting it heads twice is 1/2 * 1/2 which is 1/4 so the person who best they can get 2 heads in a row pays 1/4 of the bet being 5 dollars because 1/4 of 20 is 5 and the person who bets that they can't get two heads pays 15 dollars because that is 3/4 of the bet

tldr: 1/4 chance to get heads pays 1/4 of bet 5$
3/4 chance not to get heads pays 3/4 of bet 15$