Help answer these questions. Consider the game in which a coin will be flipped three times.

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. Possibilities Probability 0 heads, -a 1 heads, 2 heads, a 3 heads, 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 $ |:| ; a person who is riskneutral 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? Possibilities 3 tails, 0 heads tails, heads, tails tails, tails, heads heads, tails, tails 2 heads, 1 tails 3 heads, 0 tails I II II II II II I. J *4 Expected value = $ D A person who is risk-averse will want to pay less than $ U ; a person who is risk neutral will be willing to pay $ U