Heads and tails are equally likely but you win a dollar on heads and lose a dollar on tails
A)the expected value is $0.50
B)the expected value is -$0.50
C)the expected value is $1.00
D)the expected value is $0.00

Name: Heads and tails are equally likely but you win a dollar on heads and lose a dollar on tails A)the expected value is $0.50 B)the expected value is -$0.50 C)the expected value is $1.00 D)the expected value is $0.00
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Question

Quizplus · Accepted Answer

The expected value is calculated as (0.5 * $1) + (0.5 * -$1) = $0.00.

Heads and Tails Are Equally Likely but You Win a Dollar