You Have a Decision to Invest $10,000 in Any of Four

question 4

Essay

You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favorable or unfavorable, and you estimate the percent returns over the next year. What is the maximax choice?

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Definitions:

Ergo Propter Hoc

Refers to the logical fallacy where it is assumed that because one thing follows another, the first thing caused the second.

Fallacy

An incorrect belief or mistaken reasoning often based on unsound argument.

Deregulated

Refers to the reduction or elimination of government power in a particular industry, usually to create more competition and increase efficiency.

Post Hoc

Post hoc, short for "post hoc ergo propter hoc," is a logical fallacy that assumes a cause-and-effect relationship simply because one event follows another.