document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=909723>Question 909723</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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. <BR>\n" );
document.write( "What is the expected value of the payout in this game?  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #551998 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=551998\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A school fundraiser charges $5 to play. Player flips a coin. <BR>\n" );
document.write( "If coin lands on Tails,the player looses and gets nothing.<BR>\n" );
document.write( "His gain is -$5 <BR>\n" );
document.write( "Note: P(tails) = 1/2<BR>\n" );
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document.write( "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.<BR>\n" );
document.write( "If heads/heads win $5 : probability = 1/4<BR>\n" );
document.write( "If heads/tails : wins 0; probability = 1/4<BR>\n" );
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document.write( "What is the expected value of the payout in this game?<BR>\n" );
document.write( "Expected gain = (1/2)(-5) + (1/4)5 + (1/4)0 = -5/2 + 5/4 = -5/4 = -$1.25<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( "=========================  </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );