Suppose you play a game where you toss three fair coins. If you get three tails, you win $10. Otherwise, you lose $2. If you were to play this game 15 times, how much would you expect to gain or lose?

Answer: The chances of occurrence of tail when we toss the coin is 50% which can be explained by the following formula:

Probability = Number of favorable events / # of Total event

Here the number of Total events = 2^3 = 8

Number of total events can also be found by following Way:

1. Head, Head, Head

2. Head, Head, Tail

3. Head, Tail, Tail

4. Tail, Tail, Tail

5. Tail, Tail, Head

6. Tail, Head, Head

7. Head, Tail, Head

8. Tail, Head, Tail

This implies

Number of favorable events = 1 & Number of Total events = 8

By putting values:

Probability = 1 / 8 = 12.5%

So the chances of winning $10 is 12.5% whereas loosing $2 is 87.5%.