You flip a fair coin ten times.Each time it comes up heads,you get 10 cents.Each time it comes up tails,you lose 5 cents.What is your expected value for each flip of the coin

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Quizplus · Accepted Answer

The expected value for each flip is calculated by taking the probability of getting heads (0.5) times the amount won for heads ($0.10) plus the probability of getting tails (0.5) times the amount lost for tails (-$0.05). This gives (0.5 * $0.10) + (0.5 * -$0.05) = $0.05 + (-$0.025) = $0.025 or 2.5 cents, which rounds to +5 cents when considering the options provided.

You Flip a Fair Coin Ten Times