A game is played where a fair coin is tossed three times. If one gets heads on all tosses, or tails on all tosses, then one is paid $14$. If any other result comes up then nothing is given out. If the cost of playing is $4$, what is the expected value of the amount of money you'll have at the end of the game?
[Math] expected value with coin
probability
Best Answer
Hint: You've got a $\frac28=\frac14$ chance of winning anything, and the only amount you can win is $\$14.$ What are your expected winnings, then? Now take into account the amount the game costs to play.