2. Individual Problems 17-2 You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $3 million to $5 million. If they are wrong, their prize is decreased to $2,250,000. You believe you have a 10% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is $ you Given that this is play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is what probability does playing the final round yield an expected value of zero?) (Hint: At

2. Individual Problems 17-2 You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $3 million to $5 million. If they are wrong, their prize is decreased to $2,250,000. You believe you have a 10% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is $ you Given that this is play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is what probability does playing the final round yield an expected value of zero?) (Hint: At

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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