SCENARIO 5-4
Two Different Designs on a New Line of Winter

question 54

Short Answer

SCENARIO 5-4
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. $$\begin{array} { | r | c | r | r | } \hline { \text { Probability } } & \text { Taste } & \text { Design A } & \text { Design B } \\\hline 0.2 & \text { more conservative } & 180 & 520 \\\hline 0.5 & \text { no change } & 230 & 310 \\\hline 0.3 & \text { more liberal } & 350 & 270 \\\hline\end{array}$$
-Referring to Scenario 5-4, what is the variance of your profit when Design B is chosen?

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Definitions:

Proximity

The physical closeness or distance between two or more entities, often influencing their interactions or relationships.

Self-Disclosure

The act of revealing personal information about oneself to others, fostering intimacy and understanding in relationships.

Altruism

Altruism is the selfless concern for the well-being of others, often leading to acts of kindness without expectation of reward.

Attribution Theory

A theory focused on how people explain the causes of behavior and events, attributing them to internal dispositions or external situations.