A Fair Coin Is Flipped

question 71

Multiple Choice

A fair coin is flipped.You will be paid $1 when it is heads and penalized $1 otherwise.What is the variance of the payoffs?

• A) 0.
• B) 1.
• C) 0.50.
• D) 0.25.

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Definitions:

Responding

The act of answering or reacting to something, such as a question, situation, or stimulus.

Ringing

A sound sensation, often described as a persistent high-pitched sound in the ears, not caused by an external source.

Ears

Organs on the sides of the head responsible for detecting sound, maintaining balance, and facilitating hearing.

Bleeding

The escape of blood from a ruptured blood vessel, either internally or externally, which can range from minor to a potentially life-threatening condition.