Answer: The mean and variance of Y are $0.25 and $6.19 respectively.
Step-by-step explanation:
The scenario is as follows: You and a friend participate in a game involving tossing a fair coin.
The sample space for tossing two coins is {TT, HT, TH, HH}
Let Y represent the earnings from one round of the game.
If both faces are heads, you win $1; therefore, P(Y=1)=P(TT)=
You win $6 if both faces are heads, so P(Y=6)=P(HH)=
If the faces do not match, you lose $3 which means P(Y=1)=P(TH, HT)=
To find the expected value to win: E(Y)=

Thus, the mean of Y: E(Y)= $0.25

Variance = ![E[Y^2]-E(Y)^2](https://tex.z-dn.net/?f=E%5BY%5E2%5D-E%28Y%29%5E2)

Therefore, variance of Y = $ 6.19