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

question 61

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, the table above is called the ______________ for the two designs.

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Definitions:

Poorhouses

Institutional facilities established in the 19th and early 20th centuries to house and support the indigent and poor.

Asylums for the Insane

Historic institutions intended for the treatment and care of individuals with mental illnesses, now more commonly referred to as psychiatric hospitals.

American Tract Society

A publishing organization founded in 1825 for the purpose of distributing Protestant religious literature in the United States.

Modern Life

The lifestyle and characteristics of society in the contemporary period, influenced significantly by technology, urbanization, and social change.