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

question 14

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 standard deviation of your profit when Design A is chosen?

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Definitions:

Summary Judgment

A legal judgment made by a court without a full trial, based on the presented facts where there is no dispute.

Motion To Dismiss

A legal filing requesting that a court dismiss a case for reasons such as lack of jurisdiction, failure to state a claim, or other legal defenses.

Relevant

Pertains to the matter at hand, having significant and demonstrable bearing on the facts or issues.

Probability

A measure of the likelihood or chance that a particular event will occur, often expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.