In a game, A gives B three well-balanced quarters to flip. B will get to keep all the ones that land heads and will returnthose landing tails. However, if all three coins land tails,B must pay A $2.

A) Find the expected value and the variance ofB’s net gain.

B) Interpret the answers obtained in A)

I know that if you get:

0 heads à Lose 2$

1 head -> Win $0.25

2 heads -> Win $0.50

3 heads -> Win $0.75

How do you figure out the rest? Thanks for theassistance.

Answer rating: 100% (QA)

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