A person pays $1to play the following game. The person tosses a fair coin four time. If no head occurs, the person just loses the initial dollar, if three heads occur, the person pays an additional $2, if one head occurs, the person just loses the initial dollar, if three heads occur, the person wins $4. What is the person’s expected gain or loss?
To find the expected gain or loss.
The person pays to play the game of tossing a fair coin four times and the following cases occur-
No head -pays an additional .
One head-pays an additional .
Two heads-just loses the initial dollar.
Sample space for a fair coin to be tossed four times
Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!Get Started