SCENARIO 5-12
Two Different Designs on a New Line of Winter

question 343

Essay

SCENARIO 5-12
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. $$\begin{array} { | c | c | r | r | } \hline \text { Probability } & \text { Taste } & \text { Design A } & \text { Design B } \\\hline 0.2 & \text { more conservative } & 180 & 520 \\\hline 0.5 & \text { no change } & 230 & 310 \\\hline 0.3 & \text { more liberal } & 350 & 270 \\\hline\end{array}$$
-Referring to Scenario 5-12, what is the covariance of the profits from the two different designs?

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Definitions:

Secondary Follicles

The stage in the development of ovarian follicles where they begin to accumulate fluid and grow larger, preceding ovulation.

Menarche

Establishment of menstrual function; the time of the first menstrual period or flow.

Menstrual Bleeding

The monthly shedding of the lining of the uterus (endometrium) when pregnancy does not occur, resulting in bleeding from the vagina.

Sexual Drive

The overall sex drive or desire for sexual activity, influenced by biological, psychological, and social factors.