A game involves tossing a biased coin that has a 60% probability of landing on heads. If a player wins $50 when heads appears, w

Question

Stolb23 [73]

4 years ago

7

A game involves tossing a biased coin that has a 60% probability of landing on heads. If a player wins $50 when heads appears, w

hat is the expected value of a player's winnings?

Mathematics

1 answer:

Alenkasestr [34] · Answer 1 · 2022-01-01T01:36:28+03:00

Alenkasestr [34]4 years ago

3 0

Probability of winning = 0.6 , Probability losing = 1-0.6 = 0.4

Expected value = 50(0.6) - 1(0.4) = $29.6

The interpreation of this is that if you play many times you would expect a profit of $29.6.