You Take a Position with a Large Real Estate Development

question 111

Essay

You take a position with a large real estate development company as your first job after graduation.Your first big assignment is to sell an office building - you have been informed the company's cost into the building (and the bottom line price it is willing to accept)is $400,000.You have identified a likely buyer and you assess that his top price is either $500,000 with a probability of .3,$600,000 with a probability of .5,or $1,000,000 with a probability of .2.You have to commit to a posted price - what price will maximize your profitability?

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Definitions:

Horney's Theory

A psychoanalytic theory by Karen Horney focusing on social and cultural factors affecting personality, introducing the concepts of basic anxiety and neurotic needs.

Locus of Control

The extent to which individuals believe that they can control events that affect them, with variations ranging from internal (personal control) to external (control by external forces).

Behavioral Evidence

Observational data pertaining to actions and reactions that provide insight into underlying psychological processes or conditions.

Social Cognitive Theory

A theory that emphasizes the importance of observational learning, imitation, and modeling in understanding behavior.