A Family Business Is Considering Making an Investment in Its

question 42

Multiple Choice

A family business is considering making an investment in its manufacturing operation. Three decisions are under consideration: (1) a large investment; (2) a medium investment; and (3) a small investment. The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand; and (3) decreasing demand. The following payoff table describes the decision situation: The best decision for the business using the minimax regret decision criterion would be to

• A) make the large investment.
• B) make the medium investment.
• C) make the small investment.
• D) choose decreasing demand.

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Definitions:

Dominant

Pertaining to a trait, allele, or characteristic that overrides or masks another in genetic expression.

Recessive

A term often used in genetics to describe a trait that is not expressed unless two copies of the gene are present.

Karyotypes

The number and appearance of chromosomes in the nucleus of a eukaryotic cell, which can be analyzed to identify genetic abnormalities.

Postnatal Brain Growth

The process of brain development and increase in size that occurs after birth through childhood and adolescence.