What is the lowest probability of correct guess

Assignment Help Business Economics

Reference no: EM13889045

In the final round of a tv game show, contestants have a chance to increase their current winnings of $1 million to $2 million. if they are wrong, their prize money is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play> What is the lowest probability of a correct guess that would make playing profitable?

Reference no: EM13889045

Questions Cloud

The short run for a company : The short run for a company is

Bank pays interest compounded annually : Mike deposited $500 in the bank at the end of each year for five years. The bank pays 5% interest, compounded annually. How much would mike have in his account following the 5th deposit?

Is there a shortage or a surplus of cheese : The government has decided that the free-market price of cheese is too low. Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram to show the effects of this policy on the price of cheese and the ..

Government undertake any proactive fiscal or monetary policy : Suppose the economy is initially in long-run equilibrium and the U.S. stock market has a prolonged decrease in shareholder value. Use the AD–AS model to predict short-run changes to real GDP and the aggregate price level. Should the government undert..

What is the lowest probability of correct guess : In the final round of a tv game show, contestants have a chance to increase their current winnings of $1 million to $2 million. if they are wrong, their prize money is decreased to $500,000. A contestant thinks his guess will be right 50% of the time..

Frictional unemployment is caused primarily by automation : In discussing the distribution of income among families, the term “lowest fifth” indicates. Which of the following has not been outsourced from the U.S.? Frictional unemployment is caused primarily by automation. Unemployment caused by an imbalance b..

Increase production and decrease their average costs : Monopolistically competitive firms is that they do not operate at the minimum of their Average Total Costs – in other words, they could increase production and decrease their average costs – why don’t they?

How many units should each segment of the economy produce : A simplified economy is based on agriculture, manufacturing, and transportation. Each unit of agricultural output requires 0.3 units of its own output, 0.5 of manufacturing, and 0.2 unit of transportation output. There is demand for 95 units of agric..

An increase in the price of sodium carbonate : An increase in the price of sodium carbonate, a chemical compound used in detergents will:

User Account

All Pages