TABLE 5-8 Two Different Designs on a New Line of Winter Jackets

question 94

Short Answer

TABLE 5-8
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.

-Referring to Table 5-8, if you decide to choose Design A for 90% of the production lines and Design B for the remaining production lines, what is the coefficient of variation of your investment?

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Definitions:

MC

An abbreviation often used for Marginal Cost, which represents the cost of producing one more unit of a good.

AP

Advanced Placement, a program in the United States and Canada offering college-level curriculum and examinations to high school students.

AVC

Average Variable Cost; the total variable costs divided by the number of units produced, indicating the variable expense per unit of output.

MP

Marginal Product, which refers to the increase in output that results from employing an additional unit of input, holding all other inputs constant.