(Answered):Stat 200 E322 Statistic Discussion 4 . . . .

Question Description

Imagine you are in a game show, with valuable prizes to win. 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 each.
But! You are also told that, in the rest of the spaces, there will be a penaly of $50 you must pay to the host for not making the “wise” choice.
However, you aren’t required to pick a space because the host gives this offer beforehand:

Choice #1: A sure prize of $400 cash. Just take the money and walk away.