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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 a 0.

by | Nov 29, 2023 | economics

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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 a 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?

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