Question
What is the expected value of a game, if, with each coin flip, you would get $10 for HEADS, but would lose $5 for TAILS?
What is the expected value of a game, if, with each coin flip, you would get $10 for "HEADS," but would lose $5 for "TAILS?"
hint: One only needs to ascertain how many standard deviations away is the outcome from the mean. Once that number is obtained, probability can easily be calculated using the cumulative distribution function of standard normal distribution.
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
