You flIp a Coin

question 15

Short Answer

You flip a coin. If it lands heads, you lose 1 point. If it lands tails, you flip the coin again, and lose 1 point if
it lands heads and get 3 points if it lands tails. What is the expected value of the number of points you get
when you play this game.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued or suing in its own name.

Accounting Purposes

The specific reasons or objectives for maintaining financial records and conducting financial analyses, including compliance, reporting, and decision-making.

Legal Purposes

Activities or actions that are undertaken in accordance with law and designed to effectuate legal ends.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.