Question 20.5

20.5 Expected value. You flip a coin for which the probability of heads is 0.5 and the probability of tails is 0.5. If the coin comes up heads, you win $1. Otherwise, you lose $1. The expected value of your winnings is

  1. (a) $0.

  2. (b) $1.

  3. (c) −$1.

  4. (d) 0.5.