Business, 17.02.2020 23:51 Animallover100

2. You are challeneged by a friend to play a game with bets. A fair die is rolled twice, leading to four outcomes: (1) both rolls show the same even number, (2) both rolls show the same odd number, (3) the two rolls show either even followed by an odd or odd followed by an even, and (4) all other outcomes. You are allowed to bet your money on exactly two outcomes with equal dollar amounts. For example, you can bet equal dollars on an even-match (outcome 1) and odd-match (outcome 2). The payoff for each dollar you bet is $2.00 for the first outcome, $1.95 for the seecond and third outcomes, and $1.50 for the fourth outcome. (A) Draw the decision tree for the game. (B) Would you play the game?

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2. You are challeneged by a friend to play a game with bets. A fair die is rolled twice, leading to...

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