Find Expected Values, Standard Deviations and Return to Risk Ratios

question 24

Multiple Choice

Find expected values, standard deviations and return to risk ratios.
-A farm owner in upstate New York who grows summer vegetables (e.g. tomatoes)
Must decide whether to employ additional pickers this season. If he does, he could hire
Either migrant workers or local teenagers who need summer employment. The migrant
Workers are more experienced, faster, but more expensive. Although the teenagers will
Work for less, they lack experience and tend to damage plants and produce. His profits
Depend on the growing season as shown below. Suppose the farmer's almanac predicts
The probability of a good growing season this year to be .75. If the farmer is risk averse,
He would

• A) hire migrant workers.
• B) hire teenagers.
• C) do not do any extra hiring.
• D) make the same decision as he would using the expected value approach.
• E) give up farming.

Analyze the structures of attitudes and their influence on attitude change.

Recognize the use of persuasive techniques, such as low-balling, in attitude change.

Identify and explain the phenomenon of cognitive dissonance and its impact on attitudes and behaviors.

Understand the relationship between attitudes and behaviors, including the distinction between public and private behaviors.

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Definitions:

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior.

Trait

A characteristic pattern of behavior or a disposition to feel and act, as assessed by self-report inventories and peer reports.

Brain Arousal

Refers to the state of being alert and mentally and physically active, regulated by various brain structures and neurotransmitter systems.

Introvert

An individual who prefers solitary activities and is more inwardly focused on their thoughts and feelings.