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From your experience you know that when shooting at the range, you almost always hit two flying targets out of 3. Which one of the
From your experience you know that when shooting at the range, you almost always hit two flying targets out of 3. Which one of the following gambles (if any) would you be willing to take and why?
Gamble 1: You pay $6 for access to the range where you are allowed one shot at a flying target. If you hit it you get $9, otherwise you get nothing.
Gamble 2: You pay $5 for access to the range where you are allowed one or 2 shots depending on the outcome of the first shot. If you hit the target first time you get $6 and have to leave; if you miss then you are allowed the second shot: if you hit the target second time you get $6, otherwise you leave with nothing.
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