Question
17-2 Game Show Uncertainty In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million
17-2 Game Show Uncertainty
In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinkshis guess will be right 50 percent of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
