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

question 261

Essay

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

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Definitions:

Social Support

The assistance and comfort received from friends, family, and the wider community, which can have positive effects on health and well-being.

Older Adults

Refers to individuals in the later stage of life, typically considered to be those aged 65 and above.

Self-Concept

The set of attributes, abilities, and characteristics that a person describes themselves with.

Compartmentalize

The mental ability to separate and isolate conflicting thoughts, emotions, or experiences from each other.