A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands tails you lose $0.50. How much should a ticket to play this game cost if the carnival wants to break even?
A)$0.25
B)$0.50
C)$0.75
D)$1.00

Question

Quizplus · Accepted Answer

The expected value of the game is calculated as (0.5 * $1.00) + (0.5 * -$0.50) = $0.25. To break even, the ticket should cost $0.25.

A Carnival Has a Game of Chance: a Fair Coin