Find the Expected Value

question 39

Multiple Choice

Find the expected value.
-A fair coin is tossed three times,and a player wins $3 if 3 tails occur,wins $2 if 2 tails occur and loses $3 if no tails occur.If one tail occurs,no one wins.What is the expected value of the games?

• A)$2.00
• B)-$3.00
• C)$3.00
• D)$0.75

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Definitions:

Sequential

Describes processes, events, or things that follow one after the other in a specific order or sequence.

Credible Threats

Declarations or signals that a party intends to inflict harm or loss on another in the event of non-compliance, which are believable and likely to be carried out.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Repeated Games

A scenario in game theory where the same game (with the same strategy set) is played by players multiple times.