John is watching an old game show rerun on television


John is watching an old game show rerun on television called Let’s Make a Deal in which the contestant chooses a prize behind one of two curtains. Behind one of the curtains is a gag prize worth $240, and behind the other is a round-the-world trip worth $6,200. The game show has placed a subliminal message on the curtain containing the gag prize, which makes the probability of choosing the gag prize equal to 75 percent.

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Financial Management: John is watching an old game show rerun on television
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