Congratulations! You three contestants have made it to the final round of…

The Greatest Gameshow On Earth !

The crowd screams wild in anticipation and the world watches on simultaneous webcasts and TVs as we approach the conclusion of our show..

Across from you on the stage, on a large screen, you will notice a large timer marked “60”. When I give the call, this timer will count down and you will have 60 seconds to answer the question correctly..

In center stage, behold my lovely assistant.. former miss america, miss universe, swimsuit model and overnight superstar… She is the singing voice of the hit single – “Computers are Cool” and young CEO of the popular fashion magazine company known as “Fashion Two-Point-Oh”… the beautiful Vana Blue!

In Ms. Blue’s arms is a box containing four party hats.. Contestants, please step forward and prepare yourselves to press the large red button in the center of your podiums.. Ms. Blue will now make her way behind each of you, and out of sight, will remove the hats from the box and place them on your heads one by one, until only one hat rests in the box.

With the box still closed, she will now make her way behind the door to my left into a room with no other exits and place the last hat upon her own head while she is out of sight.

Each of you contestants may look to your left and right and notice the color of the hat worn by the other contestants, but you cannot look at your own.

And now, for the final challenge to see who will win the 1 billion dollar grand prize..

Out of all four hats, including the one worn by Ms. Blue in the closed off room – two of the hats are blue, the other two hats are red.

You cannot attempt to communicate with your other contestants verbally or with gestures, any cheating will result in instant disqualification and no consolation award either!

You may only push the red buzzer on your podium once – you only get one try! If the timer reaches 60 or if each of you fail to answer correctly, no one wins!

To succeed, you must guess: What color is the hat you are wearing on your head?

The timer begins… Now!

References:
Wikipedia, http://en.wikipedia.org/wiki/Hat_puzzle