ANALYZING MANAGERIAL DECISIONS: Let's Make a Deal You work for a company that is frequently involved 1. You initially selected Door #1. Prior to seeing in negotiations to acquire companies from their the contents behind Door #2, what was the current owners. You have been invited to be a guest probability that Door #1 contained the grand on the popular television game show Let's Make a prize? What was the probability that Door #1 Deal. Your boss has agreed that you can participate did not contain the grand prize (i.e., the on the game show during business hours because grand prize was behind one of the other you might learn something that would be valuable in two doors)? future business negotiations. 2. The host subsequently showed you that You are now on the game show. The following Door #2 contained $20,000 and gave events have occurred to this point: you the choice to keep what was behind . The game show host showed you three doors, Door #1 or to trade it for what was behind labeled Door #1, Door #2, and Door #3 and Door #3. What should you do or does it told you that behind one of the doors is the matter (assuming you want to go for the grand prize of $100,000. The other two doors grand prize)? [Hint: "Put yourself behind the contain smaller prizes of no more than host's podium" and consider his choice to $20,000. You assume that the host knows show you the contents behind one of the which door has the $100,000. doors. It might be useful to view the situation You were told to choose one of the doors, and as a sequential game where you choose the you randomly chose Door #1. first door at Node 1 and the host subse- quently chooses which of the remaining The host subsequently opened Door #2 and doors to show you at Node 2.] showed you that it contains a smaller prize of 3. Your boss let you participate in the game $20,000. show because she thought you might learn He has given you the following choice. You something that would be of value to your can keep what is behind Door #1 (your initial company. Does your experience on the game choice). You can trade it for the $20,000 be- show suggest any general principles that hind Door #2, or you can trade it for the un- might be useful in managerial situations? known contents behind Door #3. Explain. You want to go for the grand prize of $100,000. Thus you must decide whether to keep Door #1 or trade it for Door #3