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

question 99

Short Answer

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 expected profit if you increase the shift of your production
lines and choose to produce both designs?

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Definitions:

Legitimacy

The general perception or recognition that an entity's actions are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions.

Dormant Stakeholder

An individual or group with an interest or concern in a project or business but currently inactive or not engaged.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Discretionary Stakeholder

Stakeholders whose involvement with an organization or project is based on choice rather than necessity or contractual obligation.