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

question 154

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 70% of the production lines and Design B for the remaining production lines, what is the expected profit?

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Definitions:

Proved Reserves

Quantities of natural resources, like oil or gas, that geological and engineering information indicates with reasonable certainty can be recovered under existing economic and operating conditions.

Natural Gas

A fossil fuel composed mainly of methane, used as an energy source for heating, cooking, and electricity generation.

Consumption Rate

The speed at which goods and services are consumed or used up, often reflecting the economic activity level.

Predictions

Future estimations or anticipations based on current trends or data analysis.