Activities

Probability distributions - game for school fair


The following coin game is proposed for the school fair.
 

Flip a coin. Win on heads. Maximum of four flips.
Cost per game $2.
Flip a coin until heads appears.
A maximum of 4 flips is allowed.
Heads on 1st flip - win $1.
Heads on 2nd flip - win $2.
Heads on 3rd flip - win $3.
Heads on 4th flip - win $4.
No heads - win nothing!

Let $W be the winnings in a game. W takes the values 0,1,2,3,4.

Find the probability distribution for W.

If you played the game 100 times, what would be your expected total winnings?

Is this game worth playing at a cost of $2?


Create a similar game but provide a pay out only when two heads are achieved.

What would be a reasonable cost to charge for your game?