Question: Consider a game in which a coin will be flipped three times. For each heads you will be paid $100. Assume that the coin comes

Consider a game in which a coin will be flipped three times. For each heads you will be paid $100. Assume that the coin comes up heads with probability 1/3. a. Construct a table of the possibilities and probabilities in this game. Instructions: Enter your responises rounded to the nearest whole dollar. b. Compute the expected value of the game. The expected value of the game is $ c. How much would you be willing to pay to play this game? A person who is risk averse will want to pay less than $; person who is risk-neutral will be willing to pay $ d. Consider the effect of a change in the game so that if tails comes up two times in a row. you get nothing. How would your answers to the first three parts of this question change? Expected value =$ A person who is risk-averse will want to pay less than $ : a person who is risk-neutral will be willing to pay $

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