As the coin is tossed 3 times, all the possibles outcomes can be listed down as below.
As can be seen from above, David will win if he gets head, head and head or tail, tail and tail in successive tossings.
There are 2 possible outcomes i.e. 1st and 8th only in the above table where David can win.
∴Probability of David winning the game = P(E) = $\frac{2}{8}$ = $\frac{1}{4}$
∴Probability of David not winning the game = P(Ē) = 1 - P(E) = 1 - $\frac{1}{4}$ = $\frac{3}{4}$