A coin is tossed four times. You bet $1 that heads will come up on all four tosses. If this happens, you win $10. Otherwise, you lose your $1 bet.
Find: P(you win) =
P(you lose) =
Average winnings, µ, =
Probability of head in one toss is 0.5
If a coin is tossed 4 times then probability of head on all the 4 tosses is = = 0.0625
Then probability of you wini is
P(you win) = 0.0625
P(you lose ) = 1 - P(You win)
= 1-0.0625
= 0.9375
You win $10 if you won .
Then average wining =( winning amount) ×P(win)
= 10×0.0625
= $ 0.625
But you have to pay $1 for each game.
So your average gain is = 0.625 - 1 = -0.375
That means loss of $ 0.375
A coin is tossed four times. You bet $1 that heads will come up on all...
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