Consider the following scenario to answer the questions that follow.
Ivett and Brenda are considering playing a game called Twenties Versus Fifties. In this game, Ivett will place a $20 bill on the table, and Brenda will place a $50 bill on the table. Both players will then toss a fair coin. If both Ivett and Brenda toss heads or if they both toss tails, Ivett wins the $70 on the table. If one woman tosses heads and the other tosses tails, Brenda wins the $70 on the table.
-For Brenda,the expected value of this game is:
A) -$15.
B) -$35.
C) $15.
D) $35.
E) $70.

Question

Quizplus · Accepted Answer

The probability of both tossing heads or both tossing tails (Ivett wins) is 0.5, and the probability of one tossing heads and the other tails (Brenda wins) is 0.5. Brenda wins $70 with a probability of 0.5 and loses $50 with a probability of 0.5. The expected value for Brenda is (0.5 * $70) + (0.5 * -$50) = $35 - $50 = -$15.

Consider the Following Scenario to Answer the Questions That Follow