In a game, a child will win Rs 5 gets all heads or all tails when three coins are tossed simultaneously and he will lose Rs 3 for all other cases. The expected amount to lose in the game is
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 1
Since, three coins are tossed the possible outcomes,
$\{HHH,HHT,HTH,HTT,THH,THT,TTH,TTT\}$
E(X) = (Winning Amount × P(win)) + (Losing amount × P(Lose))
$=5×\frac{1}{4}+(-3×\frac{3}{4})$
$=\frac{5}{4}-\frac{9}{4}=-1$