In a gambling game a man is paid $5 if he gets all heads or alltails when three coin are tossed, and he will pay out $3 if eitherone or two heads show.

a. Construct a probability distribution for this situation

b. What is his expected gain

Question

Mathematics

Jared Atkins

3 May, 00:12

In a gambling game a man is paid $5 if he gets all heads or alltails when three coin are tossed, and he will pay out $3 if eitherone or two heads show.

a. Construct a probability distribution for this situation

b. What is his expected gain

+2

Answers (1)

Know the Answer?

Frank Bennett · Answer 1

Total 8 outcomes

a) X: gain

X = + 5 P (X = - 5) = 2/8 = ¼

X = - 3 P (X = - 3) = ¾

b) E (X) = (5*¼) + (-3*¾l = - 1

expected gain is - 1

Which means expected loss is $1

In a gambling game a man is paid $5 if he gets all heads or alltails when three coin are tossed, and he will pay out $3 if eitherone or two heads show.a. Construct a probability distribution for this situationb. What is his expected gain

In a gambling game a man is paid $5 if he gets all heads or alltails when three coin are tossed, and he will pay out $3 if eitherone or two heads show.

a. Construct a probability distribution for this situation

b. What is his expected gain