What Is the Maximum Gain After Two Coin Tosses for a Person

question 77

Multiple Choice

What is the maximum gain after two coin tosses for a person who starts with $1 if the occurrence of a head produces a 50% gain while the occurrence of a tail produces a 50% loss?

• A) $1.00
• B) $1.25
• C) $1.75
• D) $2.25

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Definitions:

Sharp Increase

A rapid and significant rise in a particular metric, such as price, volume, or value.

Structural Unemployment

A form of unemployment caused by shifts in the economy or changes in technology that create a mismatch between the skills of the workforce and the needs of employers.

Necessary Skills

The essential abilities and expertise required for effective performance in a specific job or activity.

Longer in Demand

Products or services that experience sustained interest and need from consumers over an extended period.