Answer to Question #304466 in Statistics and Probability for kabunshin

Question

Ron tossed unbiased coin, on each toss, he wins P50 if head appears, and loses P40 if tail appears. What will be the expected value of his gain? 

Answer 1

Solution:

Expected value$=50\times \dfrac12-40\times \dfrac12=25-20=5$

Expected value of gain is P5.