Willy Mutton has three potential bank robberies lined up. His chance of success and the size of the take are given in Table:
Robbery |
Chance of Success |
Size of Take (in millions of dollars) |
1 |
.60 |
7 |
2 |
.80 |
6 |
3 |
.70 |
5 |
These robberies must be attempted in order; if you “pass” on a robbery you may not go on to the next robbery. If Willie is caught, he loses all his money. What strategy maximizes his expected “take”?