John Is Trying to Decide Whether to Expand His Business

question 100

Multiple Choice

John is trying to decide whether to expand his business or not.If he continues his business as it is,with no expansion,there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000.If he does expand,there is a 30 percent chance he will earn $100,000,a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000.It will cost him $150,000 to expand.The expected value of John's earnings if he chooses to expand is:

• A) $320,000
• B) $230,000
• C) $900,000
• D) $140,000

---

Definitions:

Osteoporosis

A bone disease characterized by decreased density and quality of bone, making them fragile and more likely to fracture.

Reproductive System

The body system involved in sexual reproduction, including the gonads, associated ducts, and genital structures in both males and females.

Rheumatoid Arthritis

A chronic autoimmune disorder that primarily affects joints, leading to inflammation, pain, stiffness, and potentially joint deformity over time.

Bone Resorption

The process by which bone tissue is broken down by the body, involving the release of minerals from the bone into the bloodstream.