A Firm Is Considering the Decision of Investing in New $\quad$

question 24

Multiple Choice

A firm is considering the decision of investing in new plants.It can choose no new plants,one new plant,or two new plants.The following table gives the profits for each choice under three states of the economy.The manager assigns the following probabilities to each state of the economy: the economy expands,20%,the economy contracts,40%,or the economy is unchanged 40%. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { The economy }$
$\begin{array}{lccc} & \text { expands }(0.20) & \text { contracts }(0.40) & \text { unchanged }(0.40) \\ \text { no new plants } & \$ 10 \text { million } & -\$ 2 \text { million } & \$ 3 \text { million } \\1 \text { new plant } & \$ 20 \text { million } & -\$ 3 \text { million } & \$ 7 \text { million } \\2 \text { new plants } & \$ 30 \text { million } & -\$ 6 \text { million } & \$ 5 \text { million }\end{array}$
Using the expected value rule which is correct? Building

• A)no new plants is better than one.
• B)one new plant is better than two.
• C)one new plant is equivalent to building two.
• D)one new plant is better than none.
• E)c and d

Identify the factors contributing to the effectiveness of therapy, including therapist-client dynamics and professional training.

Understand the diversity of psychotherapeutic approaches and the rationale behind their application to different psychological disorders.

Understand the fundamental differences between Psy.D. and Ph.D. programs in psychology regarding their focus and career paths.

Recognize various cultural and traditional practices useful in psychological interventions with specific populations, such as Canada's Aboriginal peoples.

---

Definitions:

Statistics

The science of collecting, analyzing, interpreting, and presenting data to make informed decisions or predictions.

Mean

In statistics, the average value of a set of numbers, calculated by dividing the sum of all values by the count of values.

Median

is a statistical measure indicating the middle value in a set of data when arranged in numerical order, effectively dividing the dataset into two halves.

Rate

A measure or quantity across a specific time frame, commonly used to calculate speed, frequency, or incidence.