Posted by Chris on .
You are given 9 to 1 odds against tossing three heads with three coins, meaning you win $9 if you succeed and you lose $1 if you fail. (Find the expected value of the described game. Would you expect to win or lose money in 1 game? in 100 games? Explain.
(1/8*9)-(7/8*1) = 1.125-.875 = .25
100 games you are expected to lose
1 game you are equally likely to win or lose