Answer:
On average, a player should expect to win $15.
Step-by-step explanation:
The expected value in an event with outcomes:
x₁, x₂, ..., xₙ
Each with probability:
p₁, ..., pₙ
is given by:
Ev = x₁*p₁ + ... +xₙ*pₙ
In this case we have 3 outcomes:
player wins $75 = x₁
player wins $45 = x₂
player does not win = x₃
Let's find the probabilities of these events.
player wins $75)
Here we must have the 3 coins landing on heads, so there is only one possible outcome to win $75
While the total number of outcomes for tossing 3 coins, is the product between the number of outcomes for each individual event (where the individual events are tossing each individual coin, each one with 2 outcomes)
Then the number total of outcomes is:
C = 2*2*2 = 8
Then the probability of winning $75 is the quotient between the number of outcomes to win (only one) and the total number of outcomes (8)
p₁ = 1/8
Win $45:
This happens if the 3 coins land on tails, so is exactly equal to the case above, and the probability is the same:
p₂ = 1/8
Not wining:
Remember that:
p₁ + p₂ + ... + pₙ = 1
Then for this case, we must have:
p₁ + p₂ + p₃ = 1
1/8 + 1/8 + p₃ = 1
p₃ = 1 - 1/8 - 1/8
p₃ = 6/8
Then the expected value will be:
Ev = $75*1/8 + $45*1/8 + $0*6/8 = $15
On average, a player should expect to win $15.
