How many winner firms will be abandoned after two rounds


Problem

Do two variations on the tycoon problem with 100 firms. In the first, all numbers are the same as in the text, except the probability that a company is good is now .4 instead of .6. How many winner firms will be abandoned after two rounds of management trials? In the second variation, again use the same numbers as in the text, except the probability that a new management is competent is now .5 rather than .7. Again, how many winner firms will be abandoned after two rounds of management trials? What, if any, conclusions might you draw from these examples?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How many winner firms will be abandoned after two rounds
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