stat 200 e322 statistic discussion 4
Imagine you are in a game show, with valuable prizes to win. There are 4 prizes hidden on a game board with 16 spaces. One prize is worth $4000, another is worth $1500, and two are worth $1000 each.
But! You are also told that, in the rest of the spaces, there will be a penaly of $50 you must pay to the host for not making the “wise” choice.
However, you aren’t required to pick a space because the host gives this offer beforehand:
Choice #1: A sure prize of $400 cash. Just take the money and walk away. Period.
Choice #2: Take your chance and play the game…….
What would be your choice? Take the money and run, or play the game? Why??? â†(the most important part of this topic) Explain your reasoning (include calculations).