Discussion:
Discrete Probability Distribution
Task:
Imagine you are in a game show, where there are big money prizes that can be won.
Now, let us start the money give-away! There are 4 prizes hidden on a game board with 16 spaces. One prize is worth $4000, another is worth $1500, and two are worth $1000.
But, wait!!! You are also told that, in the rest of the spaces, there will be a bill of $50 that you have to pay to the host as a penalty for not making the "wise" choice.
In this modern game show, you are actually given a choice: a real choice.
Choice 1: You are offered a sure prize of $400 cash, and you just take the money and walk away. Period. No question asked.....
Choice 2: Take your chance and play the game.......
What would be your choice? Take the money and run, or play the game? Why? Please provide an explanation for your choice.