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Steven 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
Steven 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 gag prize worth $60, and behind the other is a round-the-world trip worth $4,900. The producer of the game show has placed a subliminal message on the curtain containing the gag prize, which makes the probability of choosing the gag prize equal to 75 percent. (a1) X Your answer is incorrect. What is the expected value of the selection? (Round answer to 2 decimal places, e.g. 15.25.) Expected value $ 3003.71
Expert Solution
| Prize | Worth | × Probability | Value |
| Gag prize | 60 | 75% | 45 |
| Round world | 4900 | 25% | 1225 |
| Expected value | 1270 |
Answer is:
1270
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