The Indiana University basketball team trails by two points with eight seconds to go and has the ball. Should it attempt a two-point shot or a three-point shot?

Assume that the Indiana shot will end the game and that no foul will occur on the shot. Assume that a threepoint shot has a 30% chance of success, and a two-point shot has a 45% chance of success. Finally, assume that Indiana has a 50% chance of winning in overtime.

Skill-Extending Problems