You and your friend each have a coin. For each round, each of you flips your coin. If both coins show heads, your friend pays you $3. If both show tails, your friend pays you $1. If the coins don't match, you pay him $2. Is this a fair game?

Answer 1

The four possible outcomes are:
outcome payment
H/H +3.00
H/T -2.00
T/H -2.00
T/T -1.00

Average -2.00/4 = -0.50

Decide for yourself.

Answer 2

mathmate~

in the last part of the list T/T you have a -1.00 but shouldnt it be +1.00? does that then change the final answer?

thank you!!

Answer 3

Definitely!
Sorry that I misread the payment scheme.
So it is now:
outcome payment
H/H +3.00
H/T -2.00
T/H -2.00
T/T +1.00

Average 0.00/4 = 0.0

I suppose the result is now evident.

Answer 4

thank you! :)