Question

Question 7 of 12, Step 1 of 2

Answer 1

Step-by-step explanation:

the expected value is calculated by multiplying each of the possible outcomes by their probability, and then summing up all these results.

tossing a coin 2 times gives us 4 possible different outcomes (all with the same probability of 0.25) :

head - tail

head - head

tail - head

tail - tail

to have exactly one head is 2 out of these 4 possible outcomes, and the probability is 0.5.

everything else is also 2 out of these 4 possible outcomes, and the probability for that is therefore 0.5 too.

the expected value (from your point of view) is

9×0.5 - 15×0.5 = -$3.00