Use the Information for the Question(s)below

question 13

Multiple Choice

Use the information for the question(s) below.
DM Skateboard company is planning to develop a new electric skateboard.In order for the project to be successful,the company must develop a new deck to accommodate a lightweight battery and a remote that is easy to operate while moving in an open environment.The company estimates the following costs,times,and probabilities of success for each component of the new skateboard: All three risks are idiosyncratic and the risk-free rate of interest is 5%.The company does not have the resources to develop all the components at the same time.Therefore,management needs to decide in what order to develop the technologies.
-What is the failure cost index of the deck technology?

• A)0.00500
• B)0.98500
• C)0.98536
• D)0.00536

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Definitions:

Conditioned Response

The learned response to a previously neutral stimulus after conditioning, as seen in classical conditioning paradigms.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Central Amygdala

A region within the amygdala of the brain involved in processing emotions, particularly fear and anxiety responses.

Conditioning Of Fear

Conditioning of fear is a psychological process where an individual learns to associate a neutral stimulus with a fearful or threatening event, resulting in the expression of fear responses to the previously neutral stimulus.