Question
To celebrate Halloween, imagine you go to a carnival with two dierent games that give out tickets. You're given two coins that you must spend
To celebrate Halloween, imagine you go to a carnival with two dierent games that give out tickets. You're given two coins that you must spend and can only choose one game to enter.
Game 1: you throw a dart at a a wheel from a reasonable distance. The wheel is equally divided into 5 parts, numbered {0, 1, 2, 3, 4}, each part rewarding their respective number amount of tickets won. Assume you never miss the wheel. It costs 1 coin to enter Game 1.
Game 2: you throw a dart at a a wheel from a reasonable distance. The wheel is equally divided into 5 parts, numbered {4,0,4,8,12}, each part rewarding their respective number amount of tickets won. Assume you never miss the wheel. It costs 2 coin to enter Game 1.
Which game would you enter in order to achieve the highest expected ticket reward with the lowest variance after spending 2 coins?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started