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Two rival game shows have developed similar (but not identical) ways of awarding

ID: 3226397 • Letter: T

Question

Two rival game shows have developed similar (but not identical) ways of awarding prizes "randomly" to their contestants. Game show A awards prizes by selecting a number Z randomly from a standard normal distribution and awarding $500 to the contestant in the event that Z > 1.8. By using a computer or tables, a knowledgeable contestant knows that her chance of winning the prize is therefore 3.59%. The game show assistant is supposed to pass the value of Z secretly to the host but accidentally reveals that the value of Z is positive. How (if at all) does this affect the contestant's chances of winning? Bonus mark: Game show B awards prizes by generating a random number Y ~ Unif(10, 20) and awarding $100 to the contestant if Y

Explanation / Answer

For Game show A
Probability of winning, P(W) = 0.0359
Probability of positive score, P(P) = 0.5
Probability of positive and winnig, P(P and W) = 0.07186
P(W|P) = P(P and W)/P(P) = 0.07186/0.5 = 0.1437

Hence if it is known that number is positive, probability of winning is 0.1437

For Game Show B
Probability of winning, P(W) = (1/10)*1.5 = 0.15
Probability that score is less than 14, P(L) = (1/10)*4 = 0.4
Probability that socre is less than 14 and winning P(W and L) = 0.15/0.4 = 0.375

P(W|L) = P(L and W)/P(L) = 0.375/0.4 = 0.9375

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