If you have given this correctly, the expected value is neither $1.00 nor $0.50, it is 0.so what is expected value of game?
the answer was something $1 (it should be correct)
but I don't quite understand... my argument is ....
while if I lose, then I will lose the stake, then it will be -$1
if I win, then i will get back $2 in total, so it should be $2
1/2 ($2) + 1/2 (-$1) = $1/2 = $0.5
I really don't quite understand how $1 comes even though my teacher had explained to me, she was very unclear