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

question 352

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 10% of the production lines and
Design B for the remaining production lines, what is the expected profit?

---

Definitions:

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective.

Sensorimotor Stage

The first stage of Piaget's theory of cognitive development, where infants interact with the environment and learn through trial and error using their senses and motor skills.

Preoperational Stage

A stage of cognitive development in Piaget's theory, during which children from about 2 to 7 years of age develop and engage in symbolic play but struggle with logic and taking the perspective of others.

Concrete Operational

A stage in cognitive development in which children gain the ability to think logically about concrete events and objects.