Question

In: Statistics and Probability

Yunsoo has ten cups face down and one cup has a $100 bill under it. You...

Yunsoo has ten cups face down and one cup has a $100 bill under it. You select cup 1. Yunsoo then groups cups 2-4 together into group A and cups 5-10 together into group B. He then flips all but one cup over in both groups to reveal that they do not have the $100 bill. What are your probabilities of winning for each of the remaining cups? Which cup should you . choose to have the highest chance of winning?

Solutions

Expert Solution

At first the probability of the $100 bill being under i-th cup was (1/10)=0.1 for all i=1,2,3,...10.

I select cup1 but it's not flipped and the probability of the $100 bill being under cup 1 is 0.1.

Now the probability of the $100 bill being in group A is (0.1+0.1+0.1)=0.3

and the probability of the $100 bill being in group B is (0.1+0.1+0.1+0.1+0.1+0.1)=0.6

Now Yunsooflip all the cups but one in each group and shows that those cups do not have the $100 bill.

Now only 3 cups are remaining the cup 1, the last cup of group A and the last cup of group B.

Anyone of the 3 has that $100 bill.

So the probability of wining for cup 1 is 0.1.

The probability of wining for the last cup of group A is

=P(the last cup of group A has the bill | the bill is in group A) P(the bill is in group A)

= 1 0.3 = 0.3

Similarly the probability of wining for the last cup of group A is

=P(the last cup of group B has the bill | the bill is in group B) P(the bill is in group B)

= 1 0.6 = 0.6

Hence I should choose the last remaining cup of the group B to have the highest chance of wining.


Related Solutions

There are two unmarked cups named M and N. Each cup has 5 mL of a...
There are two unmarked cups named M and N. Each cup has 5 mL of a white powder. One contains baking soda, the other washing soda. There is also 50 mL of a monoprotic acid and water. Determine which substance is baking soda and which is washing soda. How would I determine this?
You are presently selling 500 cups of coffee per day at $1.200 per cup. You want...
You are presently selling 500 cups of coffee per day at $1.200 per cup. You want to increase sales by dropping the price to $0.80 per cup. The Price Elasticity of Demand is -2.4. a) What is your expected new level of sales? b) Compare Total Revenue before and after the change in price. c) How would you characterize this product?
2. You are presently selling 500 cups of coffee per day at $1.200 per cup. You...
2. You are presently selling 500 cups of coffee per day at $1.200 per cup. You want to increase sales by dropping the price to $0.80 per cup. The Price Elasticity of Demand is -2.4. What is your expected new level of sales? Compare Total Revenue before and after the change in price. How would you characterize this product? 3. A deli across the street drops the price of their coffee from $1.50 per cup to $1.25 per cup. The...
Write down the ten types of risks that FIs face. Give a brief discussion of all...
Write down the ten types of risks that FIs face. Give a brief discussion of all of them.
You would like to purchase a T-bill that has a $17,500 face value and is 60...
You would like to purchase a T-bill that has a $17,500 face value and is 60 days from maturity. The current price of the T-bill is $17,375. Calculate the discount yield on this T-bill.
You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000,...
You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000, and the price is $8,925.The bill matures in 1/2 year. Compute the YTM using both discrete and continuously compounded interest on excel
You may purchase a cup of coffee at a coffee shop, pay your telephone bill, purchase...
You may purchase a cup of coffee at a coffee shop, pay your telephone bill, purchase stamps at the post office, or so forth. In many cases, the transaction is documented using a point-of-sale system. Using the Internet, find the definition of a point-of-sale system and read about the controls that have been established by the University of Toronto (Links to an external site.)Links to an external site. related to these systems to answer the following question: What is a...
An urn contains 3 ​one-dollar bills, 1​ five-dollar bill and 1​ ten-dollar bill. A player draws...
An urn contains 3 ​one-dollar bills, 1​ five-dollar bill and 1​ ten-dollar bill. A player draws bills one at a time without replacement from the urn until a​ ten-dollar bill is drawn. Then the game stops. All bills are kept by the player.​ Determine: ​(A)  The probability of winning ​$11 . ​(B)  The probability of winning all bills in the urn. ​(C)  The probability of the game stopping at the second draw.
A three-month t bill sold for a price of $99.311998 per $100 face value. What is...
A three-month t bill sold for a price of $99.311998 per $100 face value. What is the yield to maturity of this bond expressed as an Effective Annual Rate (as opposed to the Nominal Rate Rate)? Remember, the bond matures in 3 months, meaning C/Y = 4. First compute nominal rate and then figure out effective rate. Ok to solve with Excel a 2.5% b 2.8% c 3.2% d 4.0%
What interest rate is one earning over ten years if the investment initially is 100$ and you receive 20$ back at the end of ten years?
What interest rate is one earning over ten years if the investment initially is 100$ and you receive 20$ back at the end of ten years?A.6B.8C.7.2D.9.5
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT