Core Connections Integrated II, 2015
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Core Connections Integrated II, 2015 View details
2. Section 4.2
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Exercise 77 Page 238

Practice makes perfect
a A coin has two sides, which means the probability of flipping either side is 12.
P(heads)=1/2 [0.8em] P(tails)=1/2

If we multiply the probability of flipping each side by their respective value and add the products, we get the expected value from one coin flip.

Event P Value P* Value Expected Value
Heads 1/2 4 1/2* 4 2
Tails 1/2 -7 1/2* ( -7) -3.5
The expected earnings from one flip of the coin is the sum of the expected value for each side.
2+(- 3.5)
2-3.5
- 1.5
The expected value from one coin toss is - $1.50.
b From Part A we know that the expected value from one coin toss is - $1.50. Therefore, after 8 coin tosses the expected value should be this number multiplied by 8.

(- $1.50)(8)=- $ 12