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?
I think this problem is a difficulty 1. I just took the total of the 6 envelopes and divided by 3 to arrive at $14, which is not as good as $15.
If you prefer, make believe that Ann works 3 nights, and gets all of the 6 envelopes over the course of 3 nights. Then the comparison is between $42 and $45.