8) ) Exercise 7.12 THE GAME SHOW CASE Congratulations! You have just won the que

Question

8) ) Exercise 7.12 THE GAME SHOW CASE

Congratulations! You have just won the question-and-answer portion of a popular game show and will now be given an opportunity to select a grand prize. The game show host shows you a large revolving drum containing four identical white envelopes that have been thoroughly mixed in the drum. Each of the envelopes contains one of four checks made out for grand prizes of 20, 40, 60, and 80 thousand dollars. Usually, a contestant reaches into the drum, selects an envelope, and receives the grand prize in the envelope. Tonight, however, is a special night. You will be given the choice of either selecting one envelope or selecting two envelopes and receiving the average of the grand prizes in the two envelopes. If you select one envelope, the probability is 1/4 that you will receive any one of the individual grand prizes 20, 40, 60, and 80 thousand dollars.

Assume you select two envelopes. There are six combinations, or samples, of two grand prizes that can be randomly selected from the four grand prizes 20, 40, 60, and 80 thousand dollars. Four of these samples are (20, 40), (20, 60), (20, 80), and (40, 60). Select the other two samples.

(60, 20) & (40, 20)

(40, 80) & (60, 80)

(20, 20) & (40, 40)

(80, 20) & (60, 20)

Congratulations! You have just won the question-and-answer portion of a popular game show and will now be given an opportunity to select a grand prize. The game show host shows you a large revolving drum containing four identical white envelopes that have been thoroughly mixed in the drum. Each of the envelopes contains one of four checks made out for grand prizes of 20, 40, 60, and 80 thousand dollars. Usually, a contestant reaches into the drum, selects an envelope, and receives the grand prize in the envelope. Tonight, however, is a special night. You will be given the choice of either selecting one envelope or selecting two envelopes and receiving the average of the grand prizes in the two envelopes. If you select one envelope, the probability is 1/4 that you will receive any one of the individual grand prizes 20, 40, 60, and 80 thousand dollars.

Explanation / Answer

Its very simple (40,80) & (60,80) as it is clear we have started using first number with combination of other three then second with combination of rest two and third with last one.

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.