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Business, 18.06.2020 16:57 SavgeKid7578

Guatam, who is risk neutral, is considering whether to invest in a new store. After investing, he can increase the probability that demand will be high at the new store by advertising at a cost of $20 (thousand). If he makes the investment but does not advertise, he has a 20% probability of making $100 (thousand) from high demand and a 80% probability of losing $100(thousand) from low demand. Should he invest in the new store? Advertising increases the probability of high demand. What is the minimum probability of high demand resulting from advertising such that Guatam decides to invest and advertise? This minimum probability is nothing%. (Enter your response as a whole number.)

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