Container Company ​

question 98

Essay

Container Company ​
A company must decide whether or not to change its packaging to a more environmentally safe material.The impact of the decision on profits depends on which of the following three possible scenarios develops in the future. ​ Scenario 1: The media does not focus heavily on concerns about packaging and no new laws requiring changes in packaging are passed.Under this scenario,the company will make $35 million if they change their packaging now,but will make $75 million if they do not change their packaging now. ​ Scenario 2: The media does focus heavily on concerns about packaging and no new laws requiring changes in packaging are passed.Under this scenario,the company will make $50 million if they change their packaging now,but will make $55 million if they do not change their packaging now. ​ Scenario 3: The media does focus heavily on concerns about packaging and new laws requiring changes in packaging are passed.Under this scenario,the company will make $60 million if they change their packaging now,but will make only $15 million if they do not change their packaging now. ​ The prior probabilities of the three scenarios are 0.3,0.5,and 0.2,respectively. ​ ​
-{Container Company Narrative} Set up the opportunity loss table.

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Definitions:

External and Temporary

Characteristics or conditions outside of an individual that are not permanent or lasting in nature.

Overgeneralized

Referring to a conclusion or generalization that is too broad and not supported by the specific instances or evidence available.

Self-focused

Refers to the tendency of individuals to direct attention inward towards themselves, often analyzing their own behaviors and attributes.

Vicious Cycle

A sequence of reciprocal cause and effect where a problem exacerbates itself, leading to a deteriorating situation or condition.