Any time there's a 50/50 chance of something happening, you really have a coin flip question in disguise. The question could have been:
If you flip a fair coin 4 times, what's the probability of getting exactly 3 heads or exactly 3 tails?
There are numerous ways to solve coin flip questions. One of the quickest is to apply the coin flip formula.
The probability of getting exactly k results out of n flips is:
nCk/2^n
Applying the formula to this question, we get:
4C3/2^4 = 4/16 = 1/4
Since we want exactly 3 heads OR exactly 3 tails, we need to double our answer, getting 1/2.
As quick as it was to apply the formula, there's an even BETTER way to solve coin flip questions, involving memorizing a few numbers.
Here are the numbers to remember:
1 3 3 1
1 4 6 4 1
1 5 10 10 5 1
Some of you may recognize those patters as rows of numbers from Pascal's Triangle. The Triangle has a number of uses, but for GMAT purposes its most useful application is to coin flip questions.
The first row applies to 3 flip questions, the second to 4 flip questions and the third to 5 flip questions.
Let's start with the first row, 1 3 3 1, and see how it helps.
"A fair coin is flipped 3 times. What's the probability of getting exactly 2 heads?"
The entries in the row represent the different ways to get 0, 1, 2 and 3 results, respectively. In our question, we want 2 heads, so we go to the 3rd entry in the row, "3".
To find the total number of possibilities, add up the row... 1+3+3+1 = 8
So, our answer is 3/8.
Let's look at a much more complicated question:
"A fair coin is flipped 5 times. What's the probability of getting at least 2 heads?"
If we want at least 2 heads, we want 2 heads, 3 heads, 4 heads OR 5 heads. Pretty much whenever we see "OR" in probability, we add the individual probabilities.
Looking at the 5 flip row, we have 1 5 10 10 5 1. For 2H, 3H, 4H and 5H we add up the 3rd, 4th, 5th and 6th entries: 10+10+5+1=26.
Summing the whole row, we get 32.
So, the chance of getting at least 2 heads out of 5 flips is 26/32 = 13/16.