Expert answer:STAT200 UMUC Game Show Calculations and Decisions
Solved by verified expert: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??? ←(the most important part of this topic) Explain your reasoning (include calculations).