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We have a fair coin.  Suppose that we win 2 dollars if we flip a heads on a coin toss, but lose 2 dollars if we flip tails.  What is the expected value, in dollars, of our winnings after one flip?

 Jul 15, 2022
 #1
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+1

Expected value  = 

 

Value of win * probability of winning +   Cost of losing * probability of losing =   

 

2 ( 1/2)  +  -2(1/2)  =  

 

0

 

 

cool cool cool

 Jul 15, 2022

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