Expected Value for Deal or No Deal The television game

Chapter 5, Problem 26

(choose chapter or problem)

Expected Value for Deal or No Deal The television game show Deal or No Dealbegins with individual suitcases containing the amounts of 1, $1, $5, $10, $25, $50, $75,$100, $200, $300, $400, $500, $750, $1000, $5000, $10,000, $25,000, $50,000, $75,000,$100,000, $200,000, $300,000, $400,000, $500,000, $750,000, and $1,000,000. If a playeradopts the strategy of choosing the option of no deal until one suitcase remains, the payoffis one of the amounts listed, and they are all equally likely.a. Find the expected value for this strategy. b. Find the value of the standard deviation.c. Use the range rule of thumb to identify the range of usual outcomes.d. Based on the preceding results, is a result of $750,000 or $1,000,000 unusually high? Whyor why not?