document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=601459>Question 601459</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Imagine that you are a participant in a game show, where \"free\" money is given away. 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.<BR>\n" );
document.write( "If you select one of the prize spaces, you will get the related prize. However, if you select any of the other spaces, you will have to pay $50, as penalty for not making the ‘wise’ choice<BR>\n" );
document.write( "In this game show, you are actually given a choice:<BR>\n" );
document.write( "•	Choice #1: You are offered a sure prize of $400 in cash. You can take the money and leave.<BR>\n" );
document.write( "•	Choice #2: Take your chance and play the game.<BR>\n" );
document.write( "What would be your choice? Take the money and run, or play the game? Please explain your decision.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #379775 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=379775\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Imagine that you are a participant in a game show, where \"free\" money is given away. 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.<BR>\n" );
document.write( "If you select one of the prize spaces, you will get the related prize. However, if you select any of the other spaces, you will have to pay $50, as penalty for not making the ‘wise’ choice<BR>\n" );
document.write( "In this game show, you are actually given a choice:<BR>\n" );
document.write( "• Choice #1: You are offered a sure prize of $400 in cash. You can take the money and leave.<BR>\n" );
document.write( "• Choice #2: Take your chance and play the game.<BR>\n" );
document.write( "What would be your choice? Take the money and run, or play the game? Please explain your decision.<BR>\n" );
document.write( "--------------------<BR>\n" );
document.write( "Random \"winning\" values: 5000,1500,1000,1000<BR>\n" );
document.write( "Corresponding probabilities are all 4/16 = 1/4<BR>\n" );
document.write( "---------------------<BR>\n" );
document.write( "Expected \"Winnings\": (5000 + 1500 + 1000 + 1000 - 50*12)/16 = $493.75<BR>\n" );
document.write( "------<BR>\n" );
document.write( "Since the expected winnings is not that much better than $400,<BR>\n" );
document.write( "take the $400 and quit the game.<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );