Question
PLEASE HELP!! No one is able to help me on this. Many thanks!! 2. Individual Problems 17-2 You're a contestant on a TV game show.
PLEASE HELP!! No one is able to help me on this. Many thanks!!
2. Individual Problems 17-2
You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $3 million to $4 million. If they are wrong, their prize is decreased to $2,250,000. You believe you have a 25% chance of answering the question correctly.
Ignoring your current winnings, your expectedpayofffrom playing the final round of the game show is____________.
Given that this is____________ (POSITIVE/NEG), you _____________(SHOULD/ SHOULD NOT)play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.)
The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is_____________ . (Hint: At what probability does playing the final round yield an expected value of zero?)
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