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

question 15

Multiple Choice

You can invest $100,000 into either project A or B.You estimate that A succeeds with probability 0.5 in which case it doubles in value.If it fails,the scrap value is worth $50,000.Project B succeeds with probability 0.8,has value $150,000 if it succeeds and value of $30,000 if not.

• A)You should invest in project A
• B)You should invest in project B
• C)You should not invest in either
• D)You cannot tell from the information presented

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Definitions:

Upper and Lower South

Terms used to differentiate between the geographical regions of the American South, with the Upper South referring to states like Virginia and Tennessee, and the Lower South to states such as Georgia and Alabama.

Slave-Owning Class

A social class in historical contexts, particularly in the American South, that owned slaves as property for labor and economic gain.

Paternalist Ethos

A belief system advocating a hierarchical relationship between groups or individuals, whereby those in authority adopt a fatherly role of providing for and directing those under their care.

Hierarchical Society

A social system in which individuals are ranked one above the other according to status, authority, or some other criterion, creating layers of superiority and inferiority.