Question

Jac tossed an unbiased coin. If the coin lands with head up on each toss, he wins ₱50. However, if it lands

with tail up, he loses ₱60. If he continues to play the game, how much can he expect to win or lose in the

game?

Answer 1

Expected gain: $E(X)=50*\frac{1}{2}+(-60)*\frac{1}{2}=-5.$

If he continues to play the game, he can expect to lose an average of ₱5 per game.