Which option has the highest expected value

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Reference no: EM131980489

You are invited to be a contestant on the reboot of the game show deal or no deal. In this version, however there are only 3 cases: one with $1 million and each of the others are empty. Suppose you select case 2, but before Howie Mandel reveals whether or not the million dollars is in your case he opens case 3, revealing that it is empty. He then asks you if you want to select case 1, keep your case, or take a $500k payoff from the banker. Which option(s) has the highest expected value?

Reference no: EM131980489

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