10 For $50, we can enter a raffle. We draw a certificate containing a number 100, 200,...
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10 For $50, we can enter a raffle. We draw a certificate containing a number 100, 200, 300, . . . , 1,000. Each number is equally likely. At any time, we can redeem the highest-numbered certificate we have obtained so far for the face value of the certificate. We may enter the raffle as many times as we wish. Assuming no discounting, what strategy would maximize our expected profit? How does this model relate to the problem faced by an unemployed person who is searching for a job?
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Related Book For
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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