Suppose you have an unfair coin that comes up heads 60% of the time and tails 40% of the time. you play a game where you flip the coin a single time and you lose $2 if you get heads and you win $3 if you get tails. what is the expected value of your outcome?

Question

Mathematics

Akira

8 January, 00:53

Suppose you have an unfair coin that comes up heads 60% of the time and tails 40% of the time. you play a game where you flip the coin a single time and you lose $2 if you get heads and you win $3 if you get tails. what is the expected value of your outcome?

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Zain Herring · Answer 1

The expected value is that you lose 2$ because you come up with heads 60% of the time, which is the most likely outcome, and if you come up with heads then you lose 2$.