interview questions shared by candidates
We play a game. You flip two coins, if you get both heads I give you $1. If you get both tails you flip again. If you get one of each, I pay you nothing. What's the expected value of this game?
Dismiss TT since it is not part of the sample space (ie there is no outcome from it) You are twice as likely to get one of each (H-T or T-H) versus getting both heads answer: (2/3)($1) + (1/3)(0) = 66.7 cents
E=0.25x1+0.5x0+0.25xE 0.75xE=0.25 E=0.33
interviewer told me .667 is correct