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

question 188

Essay

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 30% of the production lines and Design B for the remaining production lines, what is the risk of your investment?

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Definitions:

Promissory Estoppel

A rule in law that prohibits an individual from retracting a pledge given to another if the latter has justifiably depended on this assurance to their harm.

Quasi Estoppel

A legal doctrine preventing a party from asserting rights or facts that contradict their past actions or statements.

Bilateral Contract

A type of contract involving mutual obligations whereby each party promises to perform an act in exchange for the other party's act.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.