Question

A biased coin is flipped. The probability of getting heads is 80%. A player wins $2 each time he gets tails, and a game involves 10 tosses. What is the expected value of the money earned in a game?

Answer 1

Expected value of the money earned in the game is:

$4

Explanation:

In flipping a coin the probability of getting heads is 80%.

That means,The probability of getting tail is 100% - 80% = 20%

In 10 tosses, the number of times we will get tail is:

`(20* 10 )/(100)`

= 2 times

Hence, Expected value of money earned in the game = 2 × $2 = $4

Answer 2

The probability of getting tail in one toss is 100% - 80% = 20%

In 10 tosses, the relative frequency to get tail is 0.2 × 10 = 2 times

Expected value of money earn = 2 × $2 = $4