Question

Flip a coin 13 times. If you get 7 tails or less, I will pay you $37. Otherwise you pay me $91. Step 1 of 2: Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

Answer 1

Ans) Given data n=13, probability of flipping coin p=0.5 XN Binomial (13,0.5) The probability function of x is - P(x=x) = na p? (1-P)n-2,0=0,1,2....13 Now to.08737 0.15+1+ Plx57) - plx=0) +P(x=1) +P/x=2) +lx=3){p(x=4)+ P(x=s) +P (x=6)+ P(x=7) Plx=7) = 0.0001 +0.0016 +0.0095 +0.0349 to. 0.2095 + 0.2095 pl«57) - 0-7095 expected value ad te proposition is = (37X0.7095)+ (97*(1-0.7095)) The - 26.2515 - 28.1785 2-1-927 =-193 Expected loss = -1.93