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Alice Lends $200,000 for Each New Idea

question 55

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Alice lends $200,000 for each new idea.Alice's history is that she selects low-risk projects or ideas that hit 50% of the time.What rate of return must each successful project pay Alice for her to break even?


Definitions:

Operant Conditioning

A learning process where the consequences of an action determine the likelihood of that action being repeated in the future.

Swings

Playground equipment consisting of a seat suspended by ropes or chains, used for moving back and forth.

Negative Reinforcement

A behavioral psychology concept where the removal of an unfavorable outcome or stimulus strengthens a behavior.

Nagging

Persistent and repetitive asking or demanding, often perceived as annoying or bothersome.

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