Question

If you throw exactly two heads in three tosses of a coin you win $41. If not, you pay me $29. If you played this game 713 times how much would you expect to win or lose?

Answer 1

Two heads in three tosses is 3/8, 3/8x713=267.375. 267.375×41=10,962.375.

5/8x713=445.62, 445.62×29=12,923.125

So 10,962.375-12,923.125=-1960.75

Therefore if you played this game, you would statistically lose $1960.75