If when a coin is tossed the observance of a head rewards you with a dollar and the observance of a tail costs you fifty cents, how much would you expect to gain after twenty tosses?
A)$5.00
B)$7.50
C)$10.00
D)$15.00

Question

Quizplus · Accepted Answer

The expected gain per toss is $0.25 (since there's a 50% chance to win $1 and a 50% chance to lose $0.50, resulting in an average gain of $0.25 per toss). Over 20 tosses, this results in an expected gain of 20 * $0.25 = $5.00.

If When a Coin Is Tossed the Observance of a Head