Bill and Larry toss two coins. If both coins come up heads, Bill pays Larry $4. Larry pays Bill $1 otherwise.

Question: Bill and Larry play the game 100 times, and Larry comes out $23 ahead. Use only empirical information to estimate the expected value of this game for Bill and the expected value for Larry.

Question

Bill and Larry toss two coins. If both coins come up heads, Bill pays Larry $4. Larry pays Bill $1 otherwise. 

Question: Bill and Larry play the game 100 times, and Larry comes out $23 ahead. Use only empirical information to estimate the expected value of this game for Bill and the expected value for Larry.

misty1212 · Answer

HI!!

misty1212 · Answer

just use the data, not the true probabilities right?
guess that other info is there to confuse you

misty1212 · Answer

Larry wins $23 so i guess Bill loses $23 
averaged over the 1000 games his expected value is 
$$-\frac{23}{1000}=-0.023$$

misty1212 · Answer

and for larry it is the same, but positive $$0.023$$

misty1212 · Answer

about $2.3$ cents per game

anonymous · Answer

thank you so much!! @misty1212