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?

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Definitions:

Biological Drives

Innate impulses that drive behavior and ensure survival, such as hunger, thirst, and the need for sleep.

External Rewards

Benefits or incentives provided by an external source, such as money, praise, or awards, that motivate behavior.

Biological Drives

Innate impulses that direct or motivate behavior, such as hunger, thirst, and the drive for sex.

Mastery Goals

Objectives focused on developing competence or mastering a skill rather than on comparing oneself to others.