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Bob Is Offered the Following Wager by Nabob

Question 4

Multiple Choice

Bob is offered the following wager by Nabob. For a payment of $20, Bob can flip five fair coins. If Bob flips three or more heads he wins $100, otherwise he loses $100. The expected value of this wager is:


A) $0.
B) $40.
C) $60.
D) $80.
E) $100.

Correct Answer:

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