Consider the Experiment of Tossing a Fair Coin Three Times

question 94

Multiple Choice

Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads) . If you were asked to play a game in which you tossed a fair coin three times and were given $2 for every head you threw,how much would you expect to win on average?

• A)$3
• B)$2
• C)$6
• D)$9

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Definitions:

Marginal Rate

This refers to the rate at which one variable changes with respect to a change in another variable, commonly used in economics and finance to describe rates of substitution and transformation.

Perfect Substitutes

Two goods with straight-line indifference curves.

Constant

A fixed value in mathematics, physics, and other sciences, that does not change under specified conditions.

Indifference Curves

Graphical representations in consumer theory that show combinations of two goods among which a consumer is indifferent.