Find the expected value.
-You are given 16 to 1 odds against tossing 4 tails in 4 tosses of a fair coin. This means that you win $16 if you succeed and you lose $1 if you fail. Find the expected value (to you)of the game. Round
To the nearest cent.

Question

Quizplus · Accepted Answer

The probability of tossing 4 tails in 4 tosses of a fair coin is (1/2)^4 = 1/16. The probability of not tossing 4 tails is 15/16. The expected value is calculated as (Probability of Winning * Amount Won) + (Probability of Losing * Amount Lost) = (1/16 * $16) + (15/16 * -$1) = $1 - $0.94 = $0.06.

Find the Expected Value