Suppose that we win $2 if we flip a heads on a coin toss, but lose $1 if we flip tails. What is the expected value, in dollars, of our winnings after one flip?
Suppose that we win $2 if we flip a heads on a coin toss, but lose $1 if we flip tails. What is the expected value, in dollars, of our winnings after one flip?
Expected value = probwin*$2 - problose*$1 = $0.5 (assuming a fair coin!)
+83 
