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Scenario: an Unbiased Coin Is Tossed, and If the Outcome

Question 53

Multiple Choice

Scenario: An unbiased coin is tossed, and if the outcome is heads, an individual wins $50. If the outcome is tails, the individual has to pay $50.
-Refer to the scenario above.If the rules of the gamble are changed such that in the case of heads,the individual wins $50,and in the case of tails,the individual loses $100,the expected value of the gamble changes to ________.


A) $25
B) ‒$25
C) $50
D) ‒$50

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