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Hi please use the given information to answer each part of the problem and please include a short explanation, drawing, or steps/formulas to improve my
Hi please use the given information to answer each part of the problem and please include a short explanation, drawing, or steps/formulas to improve my understanding of the problem. Thank you!
A contestant is presented with two questions, Q1 and Q2. If she decides to answer Q, 2' E {1, 2} rst, then she is allowed to move to the other question only if her answer to Qi is correct. Let the probability that the contestant answers Q1 correctly be p1 = 0.6 and the payoff for correct answer be cl =$2; and the probability that she answers Q2 correctly be 192 = 0.1 and the payoff be 02 =$1. Assume that the events of answering Q1 and Q2 correctly are independent. Let Xi, i E {1,2}, be the payoff if the contestant chooses Qi rst. (a) Which question should she try to answer rst in order to maximize her expected payoff? (b) Find Var(X1) and Var(X2) and comment on the choice of part (a)Step by Step Solution
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