Alternatively, you can register/login faster using

Register Free!
HOME
COURSEWARE

MBA/MS
 • CAT-XAT-IIFT
 • NMAT-SNAP
 • MHCET
 • CMAT-MAT
 • CAT-XAT-IIFT
 • NMAT-SNAP
 • MHCET
 • CMAT-MAT
 • Question of the Day
 • Mini CATs
 • Past CAT Exams
 • Past other MBA Exams
BANK
 • BANK
 • BANK

SSC

 • SSC CGL

UPSC
 • UPSC
 • UPSC

Campus
 • CRT
 • CRT

FREE RESOURCES
EXAMS INFO
PURCHASE
 PUZZLE OF THE WEEK
Puzzle of the week
HOME > MBA PREP CENTRE > DAILY TEST PREP > PUZZLE OF THE WEEK

 See More Puzzles
Instructions:
To submit the solution to the latest puzzle, you need to log in to TestFunda and on the puzzle page click on Solution. You will get a form to submit the solution. Please note that you can submit the solution only between Friday and Monday. Solutions posted in the comments below or sent as stand-alone emails will not be considered for prizes.

Puzzle #460 - The Game Show - Take Two
17-Mar-17
 Views : 1660 Not yet rated
Your best friend is at a game show and he has just answered the final question to win the grand prize. For the prize he is shown two envelopes, each of which has some money inside (more than zero). The host informs him that one envelope contains twice the amount of money contained in the other envelope. He is asked to choose one of the envelopes. The envelope your friend chooses is opened and it contains a cheque for Rs. 1 crore (Rs. 10 million).

The host then tells your friend that he can choose to pay Rs. 5 lacs (Rs. 0.5 million) to get the option to exchange the envelope he picked with the unopened envelope.  Your friend thinks that the other envelope will either have Rs. 2 crore (Rs. 20 million) or Rs. 50 lacs (Rs. 5 million) and he starts doing calculations on probability and expected values, but he is thoroughly confused. He uses the "Phone-a-friend" facility to call you up as you are the mathematics wizard. What should you advise your friend to do? Please provide complete explanation with your answer.
 Get In Email
Solution