Who Wants to See a $Million Error?

Inspired by the popular television show “Who Wants to Be a Millionaire?”, this case discusses the monetary decisions contestants face on a game consisting of 15 increasingly difficult multiple choice questions. Since the game continues as long as a contestant answers correctly, this case, at its core, is one of sequential decision analysis, amenable to analysis via stochastic dynamic programming. The case is also suitable for a course dealing with single decision analysis, allowing for discussion of utility theory and Bayesian probability revision. In developing a story line for the case, the author has sprinkled in much background material on probability and statistics. This material is placed in a historical context, illuminating some of the influential scholars involved in the development of these subjects as well as the birth of operations research and the management sciences.