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

question 85

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 B is chosen?

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Definitions:

Agricultural Societies

Societies that rely on agriculture as their primary means for support and sustenance, cultivating plants and domesticating animals.

Food Production

The processes involved in the creation of food items, including agriculture, farming, and manufacturing.

Material Production

The process of creating goods and services through the combination of human labor, materials, and technology.

Psychodynamic Model

A view that explains personality in terms of conscious and unconscious forces, such as unconscious desires and beliefs.