Answer to Question #324564 in Statistics and Probability for Axie

Question

You play game of tossing an unbiased coin.on each toss if a head appears on each toss, you win php.60 .however , if a tail appears you lose php 70. If you continue to play the game, how much do you expect to win or lose in the game

Answer 1

$E(X)=\frac{1}{2}*60+\frac{1}{2}*(-70)=-5.$

Expected loss: php 5.