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

question 360

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 coefficient of variation of your
investment?

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Definitions:

Substance P

A neuropeptide involved in the transmission of pain and other sensory signals to the brain, also implicated in inflammatory processes.

Endorphins

Neurotransmitters produced by the nervous system to cope with pain or stress, often described as "natural painkillers."

Sodium Ions

Charged particles of sodium, essential for the electrical signaling in nervous system and regulation of blood pressure.

Vestibular Sensation

The sense related to balance and spatial orientation, arising from the inner ear and processed by the brain's vestibular system.