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

question 143

Short Answer

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 your investment preference is to maximize your expected profit while exposing yourself to the minimal amount of risk, will you choose a production mix that will consist of 10%, 30%, 50%, 70%, or 90% of your production lines for Design A and the remaining for Design B?

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Definitions:

Representative Sampling

A method in statistics where a small subset of a population is chosen to accurately reflect the characteristics of the whole population.

Self-Report Bias

Refers to the bias that occurs when participants in research projects over or under-report behaviors or attitudes due to misremembering, misunderstanding, or wanting to present themselves in a favorable light.

Experimenter Bias

A process where the scientists performing the research influence the results, consciously or unconsciously, in order to portray a certain outcome.

Descriptive/Correlational Research

A research methodology that observes and describes behavior without influencing it, and may involve measuring the relationship between two or more variables.