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What is the variance of the number of heads you get from flipping 10 fair coins?

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Consider flipping 10 fair coins, and counting the number of consecutive HH pairs. The variance of an indicator variable on a single pair is \(\frac{3}{16}.\) There are 9 possible pairs.

Which option correctly describes the variance of the total number of consecutive HH pairs?

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We can use indicator variables to compute the variance of prices in simple models of stock prices.

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