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Maths Made Easy Forums Standard Probability & Relative Frequency Financial Expectation Reply To: Financial Expectation

Keymaster
Post count: 659

A game is played by tossing two coins. The rules are: If two heads are thrown you win $10. If two heads are not thrown you lose$5.
a. Determine the financial expectation for this game.

b. If you played this game 50 times, how much would you expect to win or lose?

Lose $1.25 b. n = 50 E = 50 × -1.25 = -62.5 ∴ lose$62.50