My Math Forum  

Go Back   My Math Forum > High School Math Forum > Probability and Statistics

Probability and Statistics Basic Probability and Statistics Math Forum

LinkBack Thread Tools Display Modes
December 23rd, 2014, 06:38 AM   #1
Joined: Dec 2014
From: Ireland

Posts: 74
Thanks: 1

Expected Value

Attached Images
File Type: png f6d17958eae901cd08f1d5c5801f4f84d2f8f661[1].png (4.5 KB, 1 views)
jbergin is offline  
December 23rd, 2014, 08:14 AM   #2
Math Team
Joined: Dec 2006
From: Lexington, MA

Posts: 3,267
Thanks: 408

Hello, jbergin!

An unfair coin shows Heads with probability $\frac{3}{4}$
and Tails with probability $\frac{1}{4}.$
A Head gains \$3 and a Tail loses \$8.
What is the expected worth of a coin flip?

$P(\text{win }\$3) = \frac{3}{4},\;\;P(\text{lose }\$8) = \frac{1}{4}$

$E \;=\;\left(\frac{3}{4}\right)(+3) + \left(\frac{1}{4}\right)(\text{-}8) \;=\;+\frac{1}{4}$

You can expect to win an average of $25\rlap{/}c$ per game.

soroban is offline  

  My Math Forum > High School Math Forum > Probability and Statistics


Thread Tools
Display Modes

Similar Threads
Thread Thread Starter Forum Replies Last Post
expected value kristeen0221 Advanced Statistics 0 February 16th, 2013 11:39 AM
Expected Value asd Advanced Statistics 5 March 19th, 2012 02:29 PM
expected value Anton29 Advanced Statistics 0 March 13th, 2012 09:59 PM
Expected Value pskye Algebra 0 April 4th, 2011 04:50 PM
Expected value kahalla Advanced Statistics 0 March 9th, 2010 12:53 AM

Copyright © 2019 My Math Forum. All rights reserved.