Suppose that a survey of MBA students reveals that among GMAT score
above 650, 52% took a preparatory course, whereas among GMAT scores of
less than 650, only 23% took a preparatory course. An applicant to an MBA
program has determined that he needs a score of more than 650 to get into
a certain MBA program, but he feels that his probability of getting that
high a score is quite low—10%. He is considering taking a preparatory
course that cost $500. He is willing to do so only if his probability of
achieving 650 or more doubles. What should he do? (13%)
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