Case 1 Races and Blows Engine

Inflow Outflow

Entry fee 30000 Tire Sponsorship 50000

Loss of Sponsorship 50000

Net -30000

Case 2 Races and wins

Entry Fee 30000 Tire Sponsorship 40000

New Sponsorship 1000000
Existing Sponsorship 500000

Net 1510000

Case 3 Races and doesn't win

Entry Fee 30000 Tire Sponsorship 40000

Existing Sponsorship 500000

Net 510000

Case 4 Does not race

Entry Fee 15000 Tire Sponsorship 40000

Loss of Sponsorship 500000
Net -475000

Favour of going for the race

Probability of event Expected Value
0.145 -4350

Cognitive Bias
Loss aversion bias
Confirmation Bias
Overconfidence
Availability Bias
Representative Bias
0.25 377500

4)
Additional information is required regarding the weather conditions

0.105 53550

0.5 -237500

Expected race 426700

Expected not race -237500
ther conditions