you have two dependent investments
investment A 20a .7
investment B 20b .3
a=how much you invest in A
b=how much you invest in B
both investments pay 20 times your money
investment A will succed .7 and if it fails investment B succeds
Investment A .7
Investment B .3
If you did this experiment an infinite number of times your expected value is
All your money should go with A even if A only succeded 51% of the time.
but say I gave you 100$
and I said this experiment will only be run one time.
it would not be very smart to invest it all in A for there is a .3 chance you will go broke. (you don't want that to happen)
So how would you invest your money? and why?
what about if i ran the experiment 2 times or 3 or 4