-30 or 270??? (1 Viewer)

[jonolad69]

QUESTION: In a game two unbiased coins are tossed. A player outlays $30 and if both coins show tails the player is paid $48, if both coins show heads the player is paid $60 - What is the expected return from $300 for this game?

My working goes as follows:

300 divided by 30 = 10 games
(1/4x48) + (1/4x60) = 27
27x10 = 270

I'm unsure if $270 is the correct answer or the expected return (which is profit/loss, right?) is -30$

 

[scaryshark09]

the expected return would be -$30

 

[indeed]

the expected return would be -$30

Yh, cause your calculation doesn't account for spending 300

 

[jonolad69]

just to confirm, 270 dollars would be the winnings. but he spent 300, so its a loss of $-30.

appreciate the help

 

[WeiWeiMan]

just to confirm, 270 dollars would be the winnings. but he spent 300, so its a loss of $-30.

appreciate the help

Loss of $30*
Loss of $-30 is a gain of $30

 

[jonolad69]

Loss of $30*
Loss of $-30 is a gain of $30

thanks, jackass

 

[WeiWeiMan]

thanks, jackass

You’re welcome!