Answer: The expected value is $4.
Step-by-step explanation:
We have that the probability of winning is equal to 20% (or 0.20 in decimal form)
The expected value can ve calculated as:
Ev = (p₁x₁ + p₂x₂ + .... + pₙxₙ)
Where x stands for a given event, and p for the probability of the event.
Here we have:
x₁ = winning $2
p₁ = 0.20
x₂= not winning anithinh.
p₂ = 0.80
Then for each flip the expected value is:
Ev = 0.2*$2 + 0.8*$0 = 0.2*$2
and in 10 flips, we have 10 times that amount:
Total expected value = 10*0.2*$2 = 2*$2 = $4
