Your team is down by two points with the ball and seconds left. A three-pointer wins the game outright and you sink it with probability . A two-pointer ties the game and sends it to overtime, which your team wins with probability , and you make the two with probability . Should you shoot the three or the two?
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#Win probability of each shot
The three-pointer wins the instant it drops, so its win probability is just the make rate,
The two-pointer only ties, so you must first make it and then win the coin-flip overtime,
#Result
Since , take the three-pointer. The flashier-looking two has the higher make rate, but tying only buys a coin flip, which discounts that down to and below the direct three. Going for the win beats playing for the tie.