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 444 small companies that will each have a 90\%90%90, percent chance of becoming successful. If all 444 small companies are successful, he will receive 101010 million dollars in profits; otherwise he will lose 333 million dollars in costs.
Large companies: He has the resources to attempt to start 222 large companies that will each have a 20\%20%20, percent chance of becoming successful. If both large companies are successful, he will receive 202020 million dollars in profits; otherwise he will lose 222 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 555 times. If he wants to maximize his expected return, what should he do?