Ann has a choice of two babysitting payment options:
- She can accept a flat rate of $15 for a night's work, or:
- She can choose two of six sealed envelopes containing $1, $1, $5, $5, $10 and a $20 bill.
(For example, the second option could leave Ann with as little as $2 or as much as $30 for a night's work.)
Assuming that Ann will have to babysit for a very long period of time, which is the better payment option for her?
(In reply to re: solution, different result
good catch, right you are. It seems I got into a bit of a roll as the (5,5) was in the middle of a bunch that needed to be considered twice so I accidently multiplied it's probability by 2.
Posted by Daniel
on 2013-08-13 14:14:03