<PRE><B>Question 909723</B>
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
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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
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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
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Cheers,
Stan H.
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