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:

Intellectual Task

A task that requires cognitive skills and mental effort, involving thinking, problem-solving, and decision-making.

Productivity Measurement

The process of quantifying the efficiency and effectiveness of production.

Precise Units

Measurement or quantities described with accuracy and exactness, often in the context of manufacturing or science.

Workforce Size

The total number of employees, both full time and part time, engaged in an organization or available in the market.