Suppose a Fair, Two-Sided Coin Is Flipped

question 27

Multiple Choice

Suppose a fair, two-sided coin is flipped. If it comes up heads you receive $5; if it comes up tails you lose $1. The variance of this lottery is what?

• A)4.5
• B)9.0
• C)13.5
• D)18.0

Apply financial formulas to real-world scenarios to make informed financial decisions.

Differentiate between beginning-of-period and end-of-period payment scenarios and their impact on financial outcomes.

Calculate the future value of a series of payments or investments using varied interest rates and time periods.

Determine the rate of return on investments and understand its implications on investment decisions.

---

Definitions:

Community College

A type of educational institution providing higher education and lower-level tertiary education, granting certificates, diplomas, and associate's degrees.

University

An institution of higher education and research, which grants academic degrees in a variety of subjects.

Saltwater Fishing

The practice of fishing in ocean waters, distinct from freshwater fishing, targeting sea fish species.

Black Bass

A common name for several species of fish in the sunfish family, popular among anglers for sport fishing.