Unformatted text preview: A ) = p A 1(1p A )(1p B ) (1p B ) p A + (1p A )[ p B p A 1(1p A )(1p B ) + p A (1p B )] Extra Problem 4 The optimal strategy For the problem is a stopping rule. Under it, the player rejects the frst r1 prizes (let prize M be the best prize among these r1 prizes), and then selects the frst subsequent prize that is better than prize M. It can be shown that the optimal strategy lies in this class oF strategies. ±or an arbitrary cuto ↵ point r , the probability 5...
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 Fall '07
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 Nobel Prize, Prize, 1 Pa, 1 Pb, 1 PA

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