Question

In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50 percent of the time. Should he play

Answer 1

The contestant should not play.

Explanation:

As per the given question, their current winning is $1 million.

The probability of the guessing to be true is 50% =
`(50)/(100) = (1)/(2)`.

There is also a possibility of 50% to be wrong, which can reduced the winning amount to $500,000 that is the half of the current amount.

Hence, the contestant should not play.