I.M.Hogg,who is risk-neutral over votes,is running for office with 500,000 sure voters.To add voters,he wants to choose n,the number of negative campaign ads to run,where 0 n 4.The ads will backfire with probability n/5 and give him no extra votes.Otherwise,the ads will work and give him 100,000 + 40,000n extra votes.So n = 0 implies a total of 600,000 votes.He should choose n = :
A) 0.
B) 1.
C) 2.
D) 3.
E) 4.

Question

I.M.Hogg,who is risk-neutral over votes,is running for office with 500,000 sure voters.To add voters,he wants to choose n,the number of negative campaign ads to run,where 0  n  4.The ads will backfire with probability n/5 and give him no extra votes.Otherwise,the ads will work and give him 100,000 + 40,000n extra votes.So n = 0 implies a total of 600,000 votes.He should choose n = :
A) 0. 
B) 1. 
C) 2. 
D) 3. 
E) 4.

Quizplus · Accepted Answer

The Answer of I.M.Hogg,who is risk-neutral over votes,is running for office with 500,000 sure voters.To add voters,he wants to choose n,the number of negative campaign ads to run,where 0  n  4.The ads will backfire with probability n/5 and give him no extra votes.Otherwise,the ads will work and give him 100,000 + 40,000n extra votes.So n = 0 implies a total of 600,000 votes.He should choose n = :
A) 0. 
B) 1. 
C) 2. 
D) 3. 
E) 4.

IMHogg,who Is Risk-Neutral Over Votes,is Running for Office with 500,000