A street vendor that would like to sell either hot drinks such as coffee, latte, and...
A street vendor that would like to sell either hot drinks such as coffee, latte, and tea, or cold drinks such as soda, and juices. If the vendor decides to sell coffee and the weather is cold, he will earn $60,000/ month. If the weather is hot he will only make $40,000.
However, if he decided to sell soft drinks and the weather is cold he will make $30,000/ month and if the weather is hot he will make $90,000/ month.
What must be the probability of cold weather for a vendor to be indifferent to sell soft drink?
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