The Host of a TV Show Offers You a Chance

Multiple Choice

The host of a TV show offers you a chance to pick one of four boxes. Three are empty, one contains $1 000. If you pick an empty box, you can pay $250 for a second pick from the remaining three boxes. If you pick another empty box, you can pay $500 for a third pick from the two remaining boxes. If you pick wrong a third time, you are out of the game. What is your expected gain (or loss) from playing this game?

A) $250
B) $310
C) $330
D) $350
E) $500