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:

Informal Systems

Systems within an organization that operate based on unwritten rules, social norms, and relationships rather than formal policies and procedures.

Self-Interested Politics

Actions and strategies employed by individuals or groups within an organization aimed at advancing personal agendas or interests, often at the expense of others.

Organizational Members

Organizational members are individuals who are part of an organization, contributing to its culture, goals, and overall function.

Internal Networks

Connections and relationships within an organization that facilitate communication and collaboration among its members.