Question

A game is played as follows:

Answer 1

Answer:

Step-by-step explanation:

Given that A game is played as follows:

A coin is flipped 3 times.

If 3 heads come up, then you win $5.

If 2 heads come up, then you lose $5.

If 1 head comes up, then you lose $4.

If no heads (all tails) come up, then you win $4.

No of heads X     0    1    2     3

Prob              p     $\frac{1}{8} , \frac{3}{8} ,\frac{3}{8} ,\frac{1}{8}$

Win                        5  -5   -4    4

Expected win of the game = Sum of win amount * Prob

=$\frac{5}{8} +\frac{-15}{8}+ \frac{-12}{8} +\frac{4}{8} \\=\frac{-18}{8}$

Since expected value is not 0 the game is not fair.

Answer 2

This game is not fair. No one will know wha their going to get. It is a game of probability