Question

Suppose you have a weighted coin in which heads comes up with probability 3/4 and tails with probability 1/4. If you flip heads, you win $2, but if you flip tails, you lose $1. What is the expected win of a con flip in dollars

Answer 1

The expected win of a coin flip in dollars is 1.25.

Explanation:

To find the expected win of a coin flip, we multiply the probability of each outcome by their earnings, and then add them.

We have that:

3/4 probability of heads. If heads, you win $2.

1/4 probability of tails. If tails, you lose $1.

What is the expected win of a coin flip in dollars?

`E = 2(3)/(4) - 1(1)/(4) = (2*3 - 1*1)/(4) = (6-1)/(4) = (5)/(4) = 1.25`

The expected win of a coin flip in dollars is 1.25.