Refer to the Following:
the Following Table Shows the Expected

question 49

Multiple Choice

Refer to the following:
The following table shows the expected value and variance for 5 projects a firm can undertake.
$$\begin{array} { c c c } \text { Praiecl } & \text { Expeted Value } & \text { Variance } \\\hline A & \$ 100 & \$ 124 \\B & \$ 220 & \$ 110 \\C & \$ 100 & \$ 138 \\D & \$ 180 & \$ 138 \\E & \$ 200 & \$ 124\end{array}$$
-Which of the following is (are) correct if the mean-variance rule is used for the decision?

• A) Project C is preferable to A.
• B) Project E is preferable to B.
• C) Project D is preferable to C.
• D) all of the above
• E) none of the above

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Definitions:

Workers Demanded

Refers to the number of workers that employers are seeking to hire at a given wage and time.

Migration

The movement of people from one place to another for the purpose of settling temporarily or permanently in the new location.

Wage Rate

The amount of compensation a worker receives per unit of time (hourly, weekly, etc.) or per unit of output.