The kid on the corner is running a game in which a fair coin is tossed twice. If exactly two tails occur, the player wins $5. If exactly one head occurs, the player wins $1. Otherwise the player gets nothing.
Calculate the expected value E(X).
I am having a hard time starting this question to begin to find the expected value. Can someone help me out with this? I would greatly appreciate it..
Calculate the expected value E(X).
I am having a hard time starting this question to begin to find the expected value. Can someone help me out with this? I would greatly appreciate it..
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two tails can only occur as TT, Pr = 1/2 * 1/2 = 1/4
one head can occur as HT or TH, Pr = 2*1/4 = 1/2
P[other results] = 1 - (1/4+1/2] = 1/4
E[x] = (1/4)*5 + (1/2)*1 + (1/4)*0 = $1.75 <----------
one head can occur as HT or TH, Pr = 2*1/4 = 1/2
P[other results] = 1 - (1/4+1/2] = 1/4
E[x] = (1/4)*5 + (1/2)*1 + (1/4)*0 = $1.75 <----------