You are given 2 to 1 odds against tossing three heads with three coins, meaning you win $2 if you succeed and you lose $1 if you fail. Find the expected value (to you) of the game. Would you expect to win or lose money in 1 game? In 100 games? Explain.

The waiting value would be "-$0.625", the expected value will be negative so the outcome of game 1 can't be predicted but the 100 games you lose.

According to the question,

Three heads must be obtained to win.

The probability will be:

→ [tex]p= (\frac{1}{2} )^3[/tex]

[tex]= 0.125[/tex]

Now,

HHH:

→ 0.125

THH:

→ [tex]p(2H, 1T) = 3\times 0.125[/tex]

[tex]= 0.375[/tex]

TTH:

→ [tex]p(1H, 2T) = 3\times 0.125[/tex]

[tex]= 0.375[/tex]

hence,

The waiting value will be:

→ [tex]EV = 2\times 0.125 -1\times 0.375-1\times -0.375-1\times 0.125[/tex]

[tex]= -0.625[/tex]

Thus the above response is correct.

Learn more:

https://brainly.com/question/13753898

You are given 2 to 1 odds against tossing three heads with three​ coins, meaning you win ​$2 if you succeed and you lose ​$1 if you fail. Find the expected value​ (to you) of the game. Would you expect to win or lose money in 1​ game? In 100​ games? Explain.

Respuesta :

Otras preguntas

You are given 2 to 1 odds against tossing three heads with three coins, meaning you win $2 if you succeed and you lose $1 if you fail. Find the expected value (to you) of the game. Would you expect to win or lose money in 1 game? In 100 games? Explain.