TABLE 5-8 Two Different Designs on a New Line of Winter Jackets

question 85

Essay

TABLE 5-8
Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants. Your profit (in thousands of dollars) will depend on the taste of the consumers when winter arrives. The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table.

-Referring to Table 5-8 if you decide to choose Design A for 70% of the production lines and Design B for the remaining production lines, what is the risk of your investment?

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Definitions:

Unconscious Drives

Inner impulses, desires, or wishes that are not directly accessible to an individual's awareness but influence behaviors and feelings.

Conflicts

Disagreements or disputes between individuals or groups, often resulting from differing needs, values, or interests.

Evolutionary Perspective

A psychological approach that explains human thoughts and behaviors in terms of their adaptive or survival value over the course of human history.

Behavioral Perspective

A way of looking at psychological issues by studying observable behavior and what determines it, without focusing on mental states.