Two Professors at a Nearby University Want to Coauthor a New

question 63

Multiple Choice

Two professors at a nearby university want to coauthor a new textbook in either economics or statistics. They feel that if they write an economics book, they have a 50 percent chance of placing it with a major publisher, and it should ultimately sell about 40,000 copies. If they cannot get a major publisher to take it, then they feel they have an 80 percent chance of placing it with a smaller publisher, with ultimate sales of 30,000 copies. On the other hand, if they write a statistics book, they feel they have a 40 percent chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they cannot get a major publisher to take it, they feel they have a 50 percent chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies.
What is the expected value for the decision alternative to write the economics book?

• A)50,000 copies
• B)40,000 copies
• C)32,000 copies
• D)30,500 copies
• E)10,500 copies

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Definitions:

Alarm Reaction

A phase in the general adaptation syndrome where the body initially responds to a stressor with changes that temporarily lower resistance.

Type A

Type A refers to a personality pattern characterized by high levels of competitiveness, self-driven urgency, and a constant sense of time pressure.

Competitive

A trait or situation characterized by rivalry where individuals or groups strive to outperform each other to achieve a goal.

Hostility

Feelings of anger and antagonism towards someone or something, often displayed through aggressive behavior or attitudes.