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

question 70

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, if you decide to choose Design A for half of the production lines and
Design B for the other half, what is the coefficient of variation of your investment?

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Definitions:

Outsourcing

The practice of hiring third-party companies or individuals to perform tasks, handle operations, or provide services that are either difficult to manage or are outside the company's expertise.

Employee Morale Risks

The potential negative effects on an organization's performance due to reduced employee satisfaction and engagement.

Bottom Line

The final net income reported by a company, indicating the company's profitability, or metaphorically, the most important or fundamental aspect of a situation.

Activities

Tasks or actions that are undertaken as part of a project or process.