Which of the Following Is a Fair Bet Based on the Toss

question 16

Multiple Choice

Which of the following is a fair bet based on the toss of an unbiased coin?

• A) head: receive $5, tail: lose $5
• B) head: receive $2, tail: lose $3
• C) head: receive $0.5, tail: lose $1
• D) head: lose $3, tail: lose $3

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Definitions:

Cash Available

Refers to funds that a company or individual can immediately use or access for payments, investments, or other financial needs.

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, acquisitions, or investments.

Ending Cash Balance

The amount of cash a company has at the end of a given period, reflecting all cash inflows and outflows during that period.

Cash Disbursements

Outflows of cash for various purposes, including operating expenses, asset purchases, and other business activities.