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

question 303

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

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A class of chemical compounds that are malleable at ambient temperatures and typically melt upon heating, often of natural or synthetic origin.

Stressor Defense

Strategies or mechanisms adopted by an individual or system to protect against stress or stress-induced conditions.

Developmental Variable

A factor that undergoes change over time and influences the growth or development of an individual or system.

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