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

question 307

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 your investment preference is to maximize your expected profit
while exposing yourself to the minimal amount of risk, will you choose a production mix that will
consist of 10%, 30%, 50%, 70%, or 90% of your production lines for Design A and the remaining
for Design B?

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Definitions:

Relationship Quality

Describes the depth and satisfaction of connections between individuals, encompassing factors like trust, communication, and mutual respect.

Trust

The confidence or belief in the reliability, truth, ability, or strength of someone or something.

Leader-member Relationship

The dynamic and interaction between a leader and their followers, which can significantly affect performance, motivation, and job satisfaction.

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to perform a task well.