First, let's calculate how much money Billy will spend on the hat:
Hat price = $1.95
Now, subtract the price of the hat from Billy's initial $5.00:
Money left = $5.00 - $1.95 = $3.05
Now, let's see which item Billy can buy with the remaining money that has the highest price among the available items:
1. Glove: $2.20
2. Bat: $2.60
3. Baseball: $3.95
4. Helmet: $3.10
Billy can buy the baseball with the remaining money because it costs less than the remaining amount. Therefore, the most expensive item he can buy with the money he has left is the baseball, priced at $3.95.