Suppose You Have an Extremely Unfair Coin: the Probability of a Head

question 38

Short Answer

Suppose you have an extremely unfair coin: The probability of a head is 1/5, and the probability of a tail is 4/5 . If you toss the coin 40 times, how many heads do you expect to see?

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Definitions:

Canadian Security

A financial instrument issued in Canada, representing an investment in stocks, bonds, or other securities.

Norwegian Krone

The official currency of Norway, symbolized as NOK.

Inflation Rate

The rapidity with which the general pricing for services and products increases, diminishing the strength of currency.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically associated with government bonds.