Question: 7.2. Expected returns: John is watching an old game show rerun on television called Let's Make a Deal in which the contestant chooses a prize
7.2. Expected returns: John is watching an old game show rerun on television called Let's Make a Deal in which the contestant chooses a prize behind one of two curtains. Behind one of the curtains is a 5 gag prize worth $150, and behind the other is a round-the world trip 5 worth $7,200. The game show has placed a subliminal message on 7 the curtain containing the gag prize, which makes the probability of 8 choosing the gag prize equal to 75 percent. What is the expected 9 value of the selection, and what is the standard deviation of that 10 selection? 11 12 13 14 15 16 6
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