Suppose Dean has $500 and he wants to maximize his expected benefit, , where X is his resources in dollars. There are two companies he could invest in: Dog Gone Salon, which has a payoff of $1,000 with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of $2,000 with 50% probability and $0 with 50% probability. Dean's expected payoff from investing in Dog Gone Salon only is

Question

Suppose Dean has $500 and he wants to maximize his expected benefit,  , where X is his resources in dollars. There are two companies he could invest in: Dog Gone Salon, which has a payoff of $1,000 with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of $2,000 with 50% probability and $0 with 50% probability. Dean's expected payoff from investing in Dog Gone Salon only is

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The Answer of Suppose Dean has $500 and he wants to maximize his expected benefit,  , where X is his resources in dollars. There are two companies he could invest in: Dog Gone Salon, which has a payoff of $1,000 with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of $2,000 with 50% probability and $0 with 50% probability. Dean's expected payoff from investing in Dog Gone Salon only is

Suppose Dean Has $500 and He Wants to Maximize His