A Small Business Just Leased a New Computer and Color

question 59

Essay

A small business just leased a new computer and color laser printer for three years. The service contract for the computer
offers unlimited repairs for a fee of $100 a year plus a $25 service charge for each repair needed. The company's research
suggested that during a given year 86% of these computers needed no repairs, 9% needed to be repaired once, 4% twice, 1%
three times, and none required more than three repairs.
-The service contract for the printer estimates a mean annual cost of $120 with standard
deviation of $30. What is the expected value and standard deviation of the total cost for the
service contracts on computer and printer?

Understand how emotional reactions (Affect heuristic) can influence ethical decision-making.

Explain the role of power dynamics (Power Differential heuristic) in ethical decision-making.

Define ethical imperatives and their role in guiding behavior.

Distinguish between ethics, tradition, religion, and law, and understand the problems of conflating these concepts.

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Definitions:

Performance Evaluation

The systematic assessment of an employee, process, or organization's performance, usually against set objectives or criteria.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholder equity, indicating how efficiently a company uses its equity to generate profit.

Investment Turnover

A metric assessing how effectively a company utilizes its investments to produce sales income.

Expanded ROI Formula

An enhanced formula for calculating return on investment that incorporates additional financial metrics beyond net profit and investment cost.