A Company Is Considering Producing Some New Gameboy Electronic Games

question 32

Multiple Choice

A company is considering producing some new Gameboy electronic games.Based on past records,management believes that there is a 70 percent chance that each of these will be successful and a 30 percent chance of failure.Market research may be used to revise these probabilities.In the past,the successful products were predicted to be successful based on market research 90 percent of the time.However,for products that failed,the market research predicted these would be successes 20 percent of the time.If market research is performed for a new product,what is the probability that the results indicate an unsuccessful market for the product and the product is actually successful?

• A)0.63
• B)0.06
• C)0.07
• D)0.24
• E)0.21

Grasp the methods to test and validate sales projections and cost estimates.

Recognize the importance of strategic options and contingency planning in business scenarios.

Understand the concept of operating leverage and its effect on business risk.

Learn about the implications of forecasting risk and how it impacts business valuation and decision-making.

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Definitions:

Political Ideology

A set of ethical ideals, principles, doctrines, myths, or symbols of a social movement, institution, class, or large group that explains how society should work, and offers some political and cultural blueprint for a certain social order.

Political Socialization

The process through which individuals acquire their political beliefs and values, often influenced by family, education, and media.

Political Theory

The study of political ideas and concepts, including the nature of justice, the role of the state, and the rights and duties of citizens, often encompassing both normative and empirical analyses.

Liberal

A political and moral philosophy based on liberty, consent of the governed, and equality before the law.