Scenario 5.5: Engineers at Jalopy Automotive Have Discovered a Safety Flaw in Flaw

question 23

Multiple Choice

Scenario 5.5:
Engineers at Jalopy Automotive have discovered a safety flaw in their new model car. It would cost $500 per car to fix the flaw, and 10,000 cars have been sold. The company works out the following possible scenarios for what might happen if the car is not fixed, and assigns probabilities to those events:
Scenario Probability Cost
A. No one discovers flaw .15 $0
B. Government fines firm .40 $10 million
(no lawsuits)
C. Resulting lawsuits are lost .30 $12 million
(no government fine)
D. Resulting lawsuits are won .15 $2 million
(no government fine)
-Refer to Scenario 5.5. Jalopy Automotive's executives,

• A) if risk-neutral, would fix the flaw because it enables them to have a sure outcome.
• B) if risk-neutral, would fix the flaw because the cost of fixing the flaw is less than the expected cost of not fixing it.
• C) if risk-loving, would fix the flaw because it enables them to have a sure outcome.
• D) if risk-averse, would not fix the flaw because the cost of fixing the flaw is more than the expected cost of not fixing it.
• E) would fix the flaw regardless of their risk preference, because of the large probability of high-cost outcomes.

Identify physical and psychological symptoms of bulimia nervosa and anorexia nervosa.

Comprehend methods and strategies for healthy weight loss and weight maintenance.

Grasp the difference between behavioral, physical, cognitive, and psychological components of emotions.

Distinguish between various theories of emotion (e.g., Cannon-Bard, James-Lange, Schachter-Singer).

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Definitions:

Data

Information that has been converted into a form that is efficient for movement or processing, representing values, statistics, or records used for analysis or computation.

Embodied Agent

An AI system that interacts with the world through a physical body within its environment, often a robot or virtual character.

Optical Character Recognition

Technology that converts different types of documents, such as scanned paper documents or PDFs, into editable and searchable data.

Image Recognition

The ability of software to identify objects, places, people, writing, and actions in images.