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Mathematics, 18.07.2019 15:00 mostman077
Adiamond merchant has a chance to buy one of 4 diamonds and wants to sell it immediately. one costs only $1000, but he has a 90% chance of getting $5000 for it (or not selling it at all). the second costs $10,000, and he has a 60% change of selling it for $25,000 (or not selling it at all). the third costs $20,000, but he has a 50% chance of selling it for $60,000 (or not selling it at all). the last diamond costs $50,000, but he has a 1% chance of selling it for $1,000,000 (or not selling it at all). which diamond gives him the best expected value?
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Adiamond merchant has a chance to buy one of 4 diamonds and wants to sell it immediately. one costs...
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