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4.2 Exercise 5

Avg difficulty 2.5

Suppose you play a game with a biased coin. You play each game by tossing the coin once. P(heads) = 2 3 \frac{2}{3} and P(tails) = 1 3 \frac{1}{3}. If you toss a head, you pay $6. If you toss a tail, you win $10. If you play this game many times, will you come out ahead?

c. What is the expected value, μ? Do you come out ahead?

OpenStax Statistics, 4.2 Mean or Expected Value and Standard Deviation, exercise 5

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Adapted from Statistics © 2022 Rice University. Licensed under CC BY 4.0. Source: Statistics. Imported at revision 7dea80a.