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A Carnival Has a Game of Chance: a Fair Coin

question 92

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A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands tails you lose $0.50. How much should a ticket to play this game cost if the carnival wants to break even?


Definitions:

Wearout

The diminishing returns in effectiveness or impact of an advertisement or message over time due to repeated exposure, leading to boredom or annoyance in the audience.

Extinction

In behavioral psychology, the process by which a previously learned behavior decreases in frequency or disappears due to the removal of reinforcement.

Hedonistic Consumption

The pursuit of pleasure and sensory gratification from the consumption of goods and services.

Positive Reinforcement

A technique used in behavior modification that involves rewarding a behavior in order to increase the likelihood of its recurrence.

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