FoundationMultiple choice
A game pays if a fair coin lands heads and nothing otherwise. Someone offers to sell it to you for . What should you do?
- ABuy: the edge is
- BSell: the price is above fair
- CDecline: the variance is too high
- DIndifferent
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
More probability questions
- You are paid the face value of one roll of a fair six-sided die. What is a fair price?Foundation
- You may re-roll a fair six-sided die as many times as you like, for free, and…Foundation
- What is the expected number of rolls of a fair six-sided die until the first six?Foundation
- Let I be 1 when an event A occurs and 0 otherwise. What is 𝔼[I]?Foundation
- You roll a fair six-sided die, then choose whether to re-roll once.Applied
- Which of these identities requires the variables to be independent?Applied