Choosing investment with best chance of success

Assignment Help Business Economics
Reference no: EM132201117

You are contemplating making one of 3 investments, A, B, or C. Here is some information about the chance of each being successful:

  • Investment A has a 0.64 chance of being successful.
  • The success of investment B depends on two smaller investments, B1 and B2, each of which has a 0.40 chance of being successful. If either B1 or B2 is a success, then B will also be a success. The success of B1 is independent of the success of B2.
  • Investment C depends on two smaller investments, C1 and C2, each of which has a 0.80 chance of success. C is successful if both C1 and C2 are successful. The success of C1 is independent of the success of C2.

Given this information, which of the 3 investments would you make, A, B, or C, if you are interested in choosing the investment with the best chance of success? Please show your work.

Reference no: EM132201117

Questions Cloud

Find the probability that exactly 8 customers : Find the probability that exactly 8 customers pay with a credit card. Show calculations. (2) Find the probability that less than 2 customers pay
Describe the right briefly using given information : Describe the right briefly and then discuss if there are any attempts to curtail (reduce) or eliminate (erase) these rights. You can use the cases described.
What is the probability that all 100 of the students : What is the probability that all 100 of the students and alumni get the number of tickets they wish to buy? Please show your work.
Excess of what weight could he lift about : In excess of what weight could he lift about 5% of the time? Please show your work.
Choosing investment with best chance of success : If you are interested in choosing the investment with the best chance of success? Please show your work.
What is the probability that she is a carrier : Suppose the woman has a son who does not have the disease; what is the probability that she is a carrier (to one decimal place)?
Procedure results in a binomial distribution : Forty people are randomly chosen from people in the U.S. and as
Write a java program to test if an array contain value : Write a Java program to test if an array contains a certain value. Input-The value (x), the items of the array
Strategy for the implementation of change : Project Management ECM28EMD - Select and apply appropriate tools and techniques for the planning and management of a project

Reviews

Write a Review

Business Economics Questions & Answers

  Technique utilizes multi-path reflections

1. What transmission technique utilizes multi-path reflections to bounce signals around objects to an intended receiver?

  Accurate description of what can cause inflation

Which of the following is not an accurate description of what can cause inflation?

  What is the funds information ratio

A fund has an alpha of 0.73 percent and a tracking error of 4.9 percent. What is the fund's information ratio?

  Explain the two most important elements of a contract

Identify and then explain the two most important elements of a contract that every manager should know about. Support your answer with an example or rationale.

  Differences in the monetary benefits

In Michigan, unemployment benefits range from $81 to $362 per week, while in Colorado, benefits range from $25 to $502 per week, and in Washington, these benefits can vary between $158 and $664 per week. In addition to differences in the monetary ben..

  Deposit withdrawals on demand-make profits for shareholders

Briefly discuss the risks facing these institutions within the context of how these institutions can have such a wide variety of assets and liabilities and still maintain their ability to make illiquid loans, meet deposit withdrawals on demand, and m..

  Aggregate expenditures model

Which of the following statements describes the main idea behind Keynes's aggregate expenditures model?

  The wage elasticity of labor supply

The wage elasticity of labor supply for women aged 18-25 is measured to be 0.3. Within this group, the average weekly wage of the high-school graduates is 2/3 the amount of college graduates. Assume that wage elasticity and all other individual chara..

  Five competitive forces that shape strategy

Explain Michael Porter's "Five Competitive Forces That Shape Strategy". What specific segments of the economy does Edmund Mennis recommend be carefully analyzed in assessing the degree of growth or stagnation of the economy?List several economic repo..

  Was schultzs strategy a blue ocean strategy

In my class Strategic Management, I want to know if anyone read the "Howard Schultz and Starbucks Coffee Company" case study in the textbook. Was Schultz's strategy a blue ocean strategy? A red ocean strategy? Elaborate on your decision.

  What is the youngest age at which don can retire

Don Ball is a 55-year-old engineer. According to mortality tables, a male at age 55 has an average life expectancy of 21 more years. Don has accumulated $150,000 toward his retirement. He is now adding $5000 per year to his retirement fund. What is t..

  Exchange economy with two consumers and two goods

Consider an exchange economy with two consumers and two goods. The consumption sets of the consumers are R_+^2. Each consumer has the same utility function u(x_1,x_2) = min{x_1, x_2}. Provide a complete characterization of all the allocations which a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd