A man comes up to play a game. you flip a coin, if heads you win $1 and keep playing if heads again you get $2, if you get heads again, $4 and so on. If you flip tails you take your money and the game is over. How much should he be willing to pay?

Question

A man comes up to play a game. you flip a coin, if heads  you win $1 and keep playing if heads again you get $2, if you get heads again, $4 and so on. If you flip tails you take your money and the game is over. How much should he be willing to pay?

Brianna · Answer

it depends onhow many times he flipes it

Tara · Answer

No it doesn't

Caruso · Answer

It does matter how many time he flips it. E(x) changes with every trial added. E(x)=Sum(P(u)X(u)) as u fulfills the total sample space