Question

Suppose you have a weighted coin in which heads comes up with probability 3/4 and tails with probability 1/4. If you flip heads, you win $2, but if you flip tails, you lose $1. What is the expected win of a con flip in dollars

Answer 1

Answer:

The expected win of a coin flip in dollars is 1.25.

Step-by-step explanation:

To find the expected win of a coin flip, we multiply the probability of each outcome by their earnings, and then add them.

We have that:

3/4 probability of heads. If heads, you win $2.

1/4 probability of tails. If tails, you lose $1.

What is the expected win of a coin flip in dollars?

$E = 2\frac{3}{4} - 1\frac{1}{4} = \frac{2*3 - 1*1}{4} = \frac{6-1}{4} = \frac{5}{4} = 1.25$

The expected win of a coin flip in dollars is 1.25.