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Probability
You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $2 million to $3 million. If they are wrong, their prize is decreased to $1,500,000. You believe you have a 10% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is $ . Given that this is positive you should not play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is what probability does playing the final round yield an expected value of zero?) . (Hint: At

You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $2 million to $3 million. If they are wrong, their prize is decreased to $1,500,000. You believe you have a 10% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is $ . Given that this is positive you should not play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is what probability does playing the final round yield an expected value of zero?) . (Hint: At

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $2 million to $3 million. If they are wrong, their prize is decreased to $1,500,000. You believe you have a 10% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is $ Given that this is positive you should not play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is what probability does playing the final round yield an expected value of zero?) . (Hint: At
Transcribed Image Text:You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $2 million to $3 million. If they are wrong, their prize is decreased to $1,500,000. You believe you have a 10% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is $ Given that this is positive you should not play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is what probability does playing the final round yield an expected value of zero?) . (Hint: At
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