Question

In each turn of a game you toss two coins. If 2 heads come up, you win 2 points and if 1 head comes up you win 1 point. If no heads come up, you lose 3 points. What is the expected value of the number of points for each turn?

–0.25

0

0.25

0.5

Answer 1

0.25

Explanation:

The Game is Favorable

Answer 2

P(2 H's) = 1/4

P(1 is H) = 1/2)

P(no H's) = 1/4

Expected value = 2 * 1/4 + 1 * 1/2 - 3 * 1/4

= 0.5 + 0.5 - 0.75

= 0.25 (answer).