A Company Is Deciding Where to Assign Its Summer Intern

question 28

Essay

A company is deciding where to assign its summer intern. The manager estimates that the intern can save $10,000 in the supply chain or increase sales (revenue) by $25,000. If sales (revenue) is divided into the three categories shown in the table where should the manager assign the intern to maximize profits?

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Definitions:

Reference Groups

Groups that individuals compare themselves to for the purpose of evaluating their behaviors, attitudes, and beliefs.

Asch's Experiment

A social psychology experiment conducted by Solomon Asch, demonstrating the power of conformity in groups by studying how individuals would change their answers to conform with the group majority.

Group Pressure

The influence exerted by a group on individual members to conform to the group's norms, values, or behaviors.

Diverse Populations

Groups of people that differ in various characteristics such as cultural background, ethnicity, language, and socioeconomic status.