SOLUTION: A school fundraiser charges $5 to play. Player flips a coin. If coin lands on Tails,the player looses and gets nothing. If coin lands on heads, player gets to flip a second time;p
Algebra.Com
Question 909723: A school fundraiser charges $5 to play. Player flips a coin. If coin lands on Tails,the player looses and gets nothing. If coin lands on heads, player gets to flip a second time;player would then either win $5 plus gets $5 back if comes as heads or just $5 if tails.
What is the expected value of the payout in this game?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A school fundraiser charges $5 to play. Player flips a coin.
If coin lands on Tails,the player looses and gets nothing.
His gain is -$5
Note: P(tails) = 1/2
------------------------------
If coin lands on heads, player gets to flip a second time;player would then either win $5 plus gets $5 back if comes as heads or just $5 if tails.
If heads/heads win $5 : probability = 1/4
If heads/tails : wins 0; probability = 1/4
--------------------
What is the expected value of the payout in this game?
Expected gain = (1/2)(-5) + (1/4)5 + (1/4)0 = -5/2 + 5/4 = -5/4 = -$1.25
=========================
Cheers,
Stan H.
=========================
RELATED QUESTIONS
A game is played using a fair coin. The coin is tossed three times. If exactly 1 head... (answered by ewatrrr)
In the game of roulette, a player can place a $6 bet on the number 9 and have a
1\38... (answered by jorel1380)
michele flips a coin and tosses a 6 sided number cube. what is the probability that the... (answered by stanbon)
in the game of roulette, a player can plave a 6$ bet on the number 21 and have a 1/38... (answered by stanbon)
In the game of roulette, a player can place a $8 bet on the number 14 and have a 1/38... (answered by VFBundy)
A coin is flipped 3 times. If you get no tail you win nothing, tails once you get $5,... (answered by greenestamps,saw)
A student flips a coin three times. What is the probability the coin lands tails up... (answered by math_helper)
Manu and Janani are playing a coin toss game with a fair penny. Manu gets a point if the... (answered by solver91311)
A wheel of fortune contains the integers 1 to 100, inclusive. Two people play against... (answered by Fombitz)