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Year 12 Specialist (Unit 3 & 4) Statistical inference

Linear combinations of random variables

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Question 1
163529

Bert plays a game with Earie. He tosses a coin four times and counts the number of times that it comes up heads. Earie charges him \(\$4\) to play and gives him \(\$2\) for each head that he tosses.
i) Express \(W\), the net amount that he wins, in terms of \(H\), the number of heads observed in the four tosses.
ii) What is the probability distribution of \(W\)?
iii) What is the probability that the net amount he wins in a game is \(\$2\) or more?

i) \(w=2 H-4\)
ii) Refer to worked solution
iii) \(\dfrac{5}{16}\)

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