Samuel is an entrepreneur and is trying to decide if he should attempt to start small companies or large companies. Small companies: He has the resources to attempt to start 4 small companies that...

Extracted text: Samuel is an entrepreneur and is trying to decide if he should attempt to start small companies or large companies. Small companies: He has the resources to attempt to start 4 small companies that will each have a 90% chance of becoming successful. If all 4 small companies are successful, he will receive 10 million dollars in profits; otherwise he will lose 3 million dollars in costs. Large companies: He has the resources to attempt to start 2 large companies that will each have a 20% chance of becoming successful. If both large companies are successful, he will receive 20 million dollars in profits; otherwise he will lose 2 million dollars in costs. What is the expected return from starting small companies? Round your answer to the nearest million dollars. million dollars What is the expected return from starting large companies? Round your answer to the nearest million dollars. million dollars In the future, Samuel raises enough money to repeat this process 5 times. If he wants to maximize his expected return, what should he do? Choose 1 answer:


Extracted text: In the future, Samuel raises enough money to repeat this process 5 times. If he wants to maximize his expected return, what should he do? Choose 1 answer: A Start small companies all 5 times. Start large companies all 5 times. C Start small companies 3 times and large companies 2 times. D Not start any companies.