Problem
If you are willing to pay $1,000 for a used stereo that is a "cherry" and $200 for a used stereo that is a "lemon," how much will you be willing to offer to purchase a stereo if there is a 50 percent chance that the stereo is a lemon? If owners of cherry stereos want $700 for their cherries, how will your estimate of the chance of getting a cherry change?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.