What Is the Expected Value of a $100 Bet on a Flip

question 14

Essay

What is the expected value of a $100 bet on a flip of a fair coin, where heads pays double and tails pays zero?
E.V.= 0.5($200) + 0.5($0) = $100
E.V.= PH (H) + PT(T); where H is the payoff from the coin turning up heads and T is the payoff if the coin turns up tails.PH and PT are the probabilities of the coin turning up heads or tails respectively.Substituting actual values in out formula reveals:

---

Definitions:

Radioallergosorbent Test

A blood test used to detect specific IgE antibodies to determine the substances a person is allergic to.

Antibodies

Proteins produced by the immune system in response to antigens, capable of specifically binding to and neutralizing foreign invaders such as bacteria and viruses.

Blood Serum

The clear, yellowish fluid part of blood that remains after clotting factors have been removed.

Pacemaker

A medical device implanted in the body to regulate the heart rate by delivering electrical impulses.