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Expected Value for Deal or No Deal In the television game

Elementary Statistics | 12th Edition | ISBN: 9780321836960 | Authors: Mario F. Triola ISBN: 9780321836960 18

Solution for problem 8RE Chapter 5.5

Elementary Statistics | 12th Edition

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Elementary Statistics | 12th Edition | ISBN: 9780321836960 | Authors: Mario F. Triola

Elementary Statistics | 12th Edition

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Problem 8RE

Expected Value for Deal or No Deal In the television game show Deal or No Deal, contestant Elna Hindler had to choose between acceptance of an offer of $193,000 or continuing the game. If she continued to refuse all further offers, she would have won one of these five equally likely prizes: $75, $300, $75,000, $500,000, and $1,000,000. Find her expected value if she continued the game and refused all further offers. Based on the result, should she accept the offer of $193,000, or should she continue?

Step-by-Step Solution:

Answer:

Step 1 of 1</p>

Here we need to find out the expected value for deal or no deal. They offered to Elna Hindler had to choose between acceptance of offer of 193000 or continuing the game. If she continue to refuse all further offers she will won one of the prizes.

X  -  75,  300,  75000,  500000,  100000.

The probability of winning prize is P(Win) = = 0.2

E(X) = x P(x)

750.2 = 15

3000.2...

Step 2 of 3

Chapter 5.5, Problem 8RE is Solved
Step 3 of 3

Textbook: Elementary Statistics
Edition: 12
Author: Mario F. Triola
ISBN: 9780321836960

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Expected Value for Deal or No Deal In the television game