You Are Offered a Favorable Bet on a Coin Toss

question 9

Multiple Choice

You are offered a favorable bet on a coin toss, heads or tails. If you correctly call the result, you gain $20. If your call is incorrect, you lose $10. What is the expected value of information if you could perfectly predict the coin toss?

• A) $5
• B) $10
• C) $15
• D) $20
• E) $7.50

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