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:

Gender Biased

Indicates a preconceived preference or prejudice toward one gender over the other, often resulting in unequal treatment.

Caste System

A traditional form of social stratification based on hereditary status, often associated with Hindu society in India, that dictates social positions and occupations.

Social Stratification

The hierarchical arrangement of individuals or groups in a society based on wealth, power, race, education, etc.

Max Weber

A German sociologist, philosopher, and political economist known for his ideas on bureaucracy, social stratification, and the sociology of religion.