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    Invest in a hotdog stand near the ballpark analysis

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    You want to invest in a hotdog 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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    https://brainmass.com/economics/competition/invest-hotdog-stand-near-ballpark-analysis-394421

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    You want to invest in a hotdog stand near the ballpark. You have a 0.35 probability that you can turn your current $15,000 into ...

    Solution Summary

    You want to invest in a hotdog 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?

    $2.19