A fair coin is flipped 20 times. Your friend proposes a bet where if it lands on heads exactly 10 times, you win $4, but if it l

Question

3 years ago

12

A fair coin is flipped 20 times. Your friend proposes a bet where if it lands on heads exactly 10 times, you win $4, but if it l

ands on heads 11 or more times or 9 or less times, you lose $1. Should you take the bet? In other words, find the expected value of the bet and if it is positive you should take it.

Mathematics

1 answer:

Rudiy27 · Answer 1 · 2022-06-20T21:24:39+03:00

Rudiy273 years ago

3 0

E[y]=∑yp(y)=4(0.176)+(−1)(0.824) =−.12 dollar, so In one play the player is expected to lose 12% of a dollar.