Question

A casino offers you a deal, in you bet $20: Flip a coin and if you...

A casino offers you a deal, in you bet $20:

Flip a coin and if you get TAILS, you win $40

Flip a coin 2 TIMES and if you get 2 TAILS, you win $400

Flip a coin 3 TIMES and if you get 3 TAILS, you win $1000

Flip a coin 10 TIMES and if you get 10 TAILS, you win $40,000

Which offer would you pick and explain your answer!

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose you can place a bet in the following game. You flip a fair coin (50-50...
Suppose you can place a bet in the following game. You flip a fair coin (50-50 chance it lands heads). If it lands heads, you get 4 dollars, if it lands tails, you pay 1 dollar. This is the only bet you can make. If you don't make the bet you will neither gain nor lose money. What is the expected utility of not placing the bet?
If you flip a fair coin and get heads 10 times in a row, what is...
If you flip a fair coin and get heads 10 times in a row, what is the chance of getting tails on the next flip? Explain.
Flip a coin 13 times. If you get 7 tails or less, I will pay you...
Flip a coin 13 times. If you get 7 tails or less, I will pay you $37. Otherwise you pay me $91. Step 2 of 2: If you played this game 968 times how much would you expect to win or lose? Round your answer to two decimal places. Losses must be entered as negative.
Question 3: You are given a fair coin. You flip this coin twice; the two flips...
Question 3: You are given a fair coin. You flip this coin twice; the two flips are independent. For each heads, you win 3 dollars, whereas for each tails, you lose 2 dollars. Consider the random variable X = the amount of money that you win. – Use the definition of expected value to determine E(X). – Use the linearity of expectation to determineE(X). You flip this coin 99 times; these flips are mutually independent. For each heads, you win...
If you flip a coin 56 times, how many times would you expect to get either...
If you flip a coin 56 times, how many times would you expect to get either 3 heads or 3 tails?
4. The Casino Control Commission takes a coin from a casino it suspects to be unfair....
4. The Casino Control Commission takes a coin from a casino it suspects to be unfair. They flip the coin 10 times and lands on heads 8 times. (a) What is the probability that a fair coin would land on heads at least 8 times? (b) Based on your answer to the last question, do you think the coin is unfair? Explain. 5. Every day, Janet either takes the bus or drives her car to work. She drives her car...
You have R500. You are approached by a person that offers you a game. You flip...
You have R500. You are approached by a person that offers you a game. You flip a coin and if it’s heads you win R450 and if it’s tails you win R50. He says it costs R250 to play each round. You decide to play 2 rounds (so you spend your full R500). Calculate the expected return and standard deviation of playing the game 2 times.
Suppose you can take a bet that pays you based on a coin flip.  If the coin...
Suppose you can take a bet that pays you based on a coin flip.  If the coin ends on heads you receive nothing, if the coin ends on tales you win $500.  Assume that you are risk averse.  First, describe the concept of Certainty Equivalent Wealth (CEW).  Next, describe how and why your CEW changes if your level of risk aversion were to increase.  Finally, describe how and why your CEW changes if the likelihood of ending on tales is greater than 50%.
You play a coin flip game where you win NOTHING if the coin comes up heads...
You play a coin flip game where you win NOTHING if the coin comes up heads or win $1,000 if the coin comes up tails. Assume a fair coin is used. Which of the following is TRUE? Group of answer choices a. A risk-seeking person would be willing to accept a cash payment of $500 to forgo (i.e. pass up) playing the game. b. A risk neutral person might accept a cash payment of $400 to forgo (i.e. pass up)...
If I tell you that I have a coin, but it is a special coin. In...
If I tell you that I have a coin, but it is a special coin. In that, I mean that it is not a 50/50 coin. However, I don't know how likely it is for it to land on heads (or tails). So we decide to flip it 10 times and we get 40% heads (which is 0.40 as a proportion). Are you willing to say that it is a 40/60 coin? Why or why not? after we flipped it...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT