Suppose that you are participating in a game show. so far, you have won $10,000 free of tax and can leave with your winnings. however, if you continue to play, you have a 50-50 chance of doubling your winnings or ending up with $7,500. what would you do?

Question

Business

Beast

2 May, 21:37

Suppose that you are participating in a game show. so far, you have won $10,000 free of tax and can leave with your winnings. however, if you continue to play, you have a 50-50 chance of doubling your winnings or ending up with $7,500. what would you do?

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Answers (2)

Know the Answer?

Parker Anthony · Answer 1

Take that 50/50 chance.

Mcduff · Answer 2

Answer

I would stop playing and leave with the $10000 free of tax

Explanation

The truth in such games is that they are not designed to be exactly 50/50. There are possibilities for outcomes that will tie or loose. Furthermore, a game that is really 50/50, the house will deduct some commission. These games always have a room for the house advantage, thus for me, I will just go with $10000 fortune!