math
posted by natalie on .
You and your friend each have a coin. For each round, each of you flips your coin. If both coins show heads, your friend pays you $3. If both show tails, your friend pays you $1. If the coins don't match, you pay him $2. Is this a fair game?

The four possible outcomes are:
outcome payment
H/H +3.00
H/T 2.00
T/H 2.00
T/T 1.00
Average 2.00/4 = 0.50
Decide for yourself. 
mathmate~
in the last part of the list T/T you have a 1.00 but shouldnt it be +1.00? does that then change the final answer?
thank you!! 
Definitely!
Sorry that I misread the payment scheme.
So it is now:
outcome payment
H/H +3.00
H/T 2.00
T/H 2.00
T/T +1.00
Average 0.00/4 = 0.0
I suppose the result is now evident. 
thank you! :)