2c) Suppose you are playing “Let’s Make a Deal”, the “prize” is worth $10,000, and a...

2c) Suppose you are playing “Let’s Make a Deal”, the “prize” is worth $10,000, and a goat is worth nothing. Further suppose that the initial pick of a door is not part of the game (since it’s random anyway). You’ve always picked door A initially before the game has begun. The game starts as nature randomly determines where the prize is (1/3 chance for any of the three doors); then Monty Hall selects one of doors B or C that has a goat (also a move by nature); then you choose to Stay at door A or to Switch to the unopened door. Finally, the outcome is resolved – either you find a goat or the prize behind the door you finally selected. If both B and C have a goat, Monty flips a coin (50/50 chance) to determine which one to open. If either B or C have the car, there is only one available door Monty can open, so he opens that one.

When should you Stay? When should you Switch?

Expert Solution

orchestra answered 2 years ago

2a) Suppose you are playing “Let’s Make a Deal”, the “prize” is worth $10,000, and a...

2a) Suppose you are playing “Let’s Make a Deal”, the “prize” is worth $10,000, and a goat is worth nothing. Further suppose that the initial pick of a door is not part of the game (since it’s random anyway). You’ve always picked door A initially before the game has begun. The game starts as nature randomly determines where the prize is (1/3 chance for any of the three doors); then Monty Hall selects one of doors B or C that...

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