The Figure Given Below Represents the Decision Tree of an Operations

question 32

Multiple Choice

The figure given below represents the decision tree of an operations head of a facility who considers a new production technique.ER represents his expected return (in thousand $) from the new technique.If he does not adopt the technique his expected return would be zero.The probabilities of the technique being a success or a failure are 0.7 and 0.3 respectively.Compute the expected return (in thousand $) from the adoption of the new production technique.

• A)$10,000
• B)$1,000
• C)-$2,000
• D)$7,200
• E)$8,600

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Calming Reaction

A response that leads to a decrease in physiological or emotional arousal, often as a result of soothing stimuli or reassurance.

Multiple Sclerosis

A chronic autoimmune disease affecting the central nervous system, leading to various neurological symptoms.