Question

An unfair coin lands on heads with probability $\frac34$ and tails with probability $\frac14$. A heads flip gains $\$3$, but a tails flip loses $\$8$. What is the expected worth of a coin flip

Answer 1

The expected worth of a coin flip are gain of $1/102 or a loss of $112.

Given probability that head lands=1/34 , probability that tails lands is 1/14, amount won if head comes=1/3, amount lost if tails comes=1/8.

We have to find the expected worth of a coin flip.

Probability is the chance of happening an event among all the events possible. The formula of calculating probability is as under:

Probability= number of items/ total items.

Probability that head comes=1/34

Amount get after head comes=$1/3

Expected value if head comes=1/3*1/34=$1/102

Probability that tails come=1/14

Amount that lost when tails come=$1/8

Expected value if tails come=1/14*1/8

=-$1/112

Total expected value of a coin flip=1/102-1/112

=10/11424

=$5/5712

It is in positive because the value we get after coming head is greater than value lost when tails come.

Hence the expected value of flick of a coin is $5/5712.

Learn more about probability at brainly.com/question/24756209

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