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You Can Invest $100,000 into Either Project a or B

question 39

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You can invest $100,000 into either project A or B.You estimate that A succeeds with probability 0.6 in which case it doubles in value.If it fails,the scrap value is worth $50,000.Project B succeeds with probability 0.7,has value $150,000 if it succeeds and value of $30,000 if not.


Definitions:

Phallic Complex

An idea in Freudian psychoanalysis referring to a stage in a child's development where there is a focus on genital organs, leading to unconscious sexual desires towards the opposite sex parent.

Erotically Tinged

Describing something that has sexual connotations or stimuli that evoke erotic feelings.

Defence Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses and to maintain one's self-schema.

Identification

The process of associating oneself with certain aspects of another person, group, or with certain characteristics.

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