mollywolly99
21.05.2020 •
Business
Imagine two people are playing tennis. The server chooses a side to serve to (forehand or backhand) and the receiver chooses a side to expect a serve. If the server chooses forehand and the receiver expects it, the receiver wins 60% of the time, but if the receiver expects backhand, the receiver only wins 20%. If the server chooses backhand, and the receiver expects backhand, the receiver wins 30%, but if the receiver doesn’t expect it, the receiver only wins 10%.
a. Show the payoff matrix implied by these probabilities.
b. Calculate the probability that the server should use to make the receiver have no benefit from guessing either side.
c. What is the probability of the server winning with this strategy?
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