In the final round of a TV game show, contestants have a chance to increase their current
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Question:
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 thinks his guess will be right 50% of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable?
Related Book For
Managerial Economics
ISBN: 9781337106665
5th edition
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward
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