The Construction Manager for Acme Construction,Inc

question 58

Essay

The construction manager for Acme Construction,Inc.must decide whether to build single family homes,apartments,or condominiums.This is not a product-mix problem,but an all-or-nothing decision.He will hire workers and rent equipment appropriate for one action only.He estimates annual profits (in thousands of dollars)will vary with population trends as follows:
a.If he uses the maximin criterion,which type of dwellings will he choose to build? Show your supporting calculations.
b.If he uses the equally likely criterion,which kind of dwellings will he choose to build? Show your supporting calculations.
c.If the construction manager were an optimist,what criterion would he choose? What would be the choice of dwelling for that criterion? Show your supporting calculations.

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Definitions:

Imitated

The action of copying or reproducing someone else's behavior, actions, or expressions, often a key method of learning and socialization.

Higher-order Conditioning

A form of learning in which a stimulus is paired with a previously conditioned stimulus, resulting in the new stimulus eliciting the conditioned response.

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with a unconditioned stimulus to elicit a conditioned response.