Question 844759: A fair coin is tossed three times, and a player wins $3 if 3 tails occur, wins $2 if 2 tails occur and loses $3 if no tails occur. If one tail occurs, no one wins. What is the expected value of the games?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A fair coin is tossed three times, and a player wins $3 if 3 tails occur, wins $2 if 2 tails occur and loses $3 if no tails occur. If one tail occurs, no one wins. What is the expected value of the games?
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Random number values::......3.......2.......1......0
Matching probabilities::....1/8.....2/8.....2/8....4/8
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E(x) = (3 + 2*2 + 2*1 + 4*0)/8 = (3+4+2+0)/8 = 9/8 = $1.12
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Cheers,
Stan H.
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