Question

You want to invest in a hot dog stand near the ballpark. You have a 0.35 probability that you can turn your current $15,000 into $50,000 and an 0.65 probability that fierce competition will drive you to ruin, losing all your money. If you decide not to enter, you keep your $15,000. Would you enter the market?

Answer 1

Answer:

Step-by-step explanation:

The probability that you can turn your current $15,000 into $50,000. This means that the probability of success is 0.35. In terms of percentage, it is 0.35×100 = 35%

You have a 0.65 probability that fierce competition will drive you to ruin, losing all your money. This means that the probability of failure is 0.65. In terms if percentage, it is 0.65×100 = 65%

Looking at the percentage, entering the market will be too risky so I won't enter market since the chance of failing is very high compared to that of succeeding