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Finale of Episode 2, Season 3, Alfred Hitchcock Presents...., 13th October 1957
Chance, Statistics@SMU, A New Semester, Term 1, 8th August 2022

Few can match the unparalleled works of the master of suspense, Alfred Hitchcock.

In his iconic "Alfred Hitchcock Presents" series, Ronald Grimes, a poor, weary bank clerk,

receives a letter from a stranger who says he can see the future,

and proceeds to correctly predict the unusual outcome of Mayor Twiss winning an upcoming election.

More such letters follow, with each foretelling accurate and given free of charge,

until Grimes can take it no more and starts to gamble on future predictions from this stranger.

Grimes winds up winning every time and stacks up $700 in winnings, very sizeable in 1957.

A final letter from this "mail order prophet" asks for a contribution to P.O. Box 64,

in return for a sure-win stock market prediction.

Grimes gives it quite willingly and acting on the prediction,

surreptitiously uses his bank's bonds to buy 100,000 shares of Athabaska Mines on margin at 30 cents apiece.

He almost goes insane waiting till he discovers that he has won $140,000 when the market closes, and promptly retires in luxury,

whereupon his close friend and colleague, George Benedict, stalks off to the police

to demand the identity of this prophet.

Watch "Alfred Hitchcock Presents..." above to answer the following questions.

(i) How many letters did Grimes get in total from the mail-order prophet,

before the former's retirement and the latter's packing up for another town and another racket?

(ii) Find the chances of Grimes winning every time until his retirement to luxury.

(iii) Do you think Grimes was just plain lucky, or did Christiani really foretell the future?

Explain.

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