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Mathematics, 31.01.2020 06:42 uchapman6286
You are a contestant on a game show called “bargain or no bargain.” you are presented with three briefcases, which contain rewards of $500,000, $2,000, and $500. the host of the show says you can either open one random case and keep the amount inside, or you can accept a guaranteed award of $160,000. what is the mathematically correct decision, and why
a. take the $160,000, because it is greater than the expected value of the briefcases.
b. choose a briefcase, because the expected value is greater than $160,000.
c. choose a briefcase ,because the expected value is less than $160,00
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