SOLUTION: In the game of heads or tails, if two coins are tossed, you win $0.68 if you throw two heads, win $0.34 if you throw a head and a tail, and lose $1.02 if you throw two tails. What
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-> SOLUTION: In the game of heads or tails, if two coins are tossed, you win $0.68 if you throw two heads, win $0.34 if you throw a head and a tail, and lose $1.02 if you throw two tails. What
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Question 1118078: In the game of heads or tails, if two coins are tossed, you win $0.68 if you throw two heads, win $0.34 if you throw a head and a tail, and lose $1.02 if you throw two tails. What are the expected winnings of this game? (Round the final answer to 4 decimal places.)
There is a 50% probability of a head on the first toss and a 50% probability of getting head on the second toss. So there is a 0.5 X 0.5 = 0.25 = 25% probability of getting two heads.
Same thing for getting two tails.
50% to get a head first and then 50% to get a tail, so P(TH) = 25%
50% to get a tail first and then 50% to get a head, so P(HT) = 25%
Hence, 50% probability of getting a head and a tail in either order.
You can do your own arithmetic.
John
My calculator said it, I believe it, that settles it
