Two Professors at a Nearby University Want to Coauthor a New

question 208

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 optimum decision alternative?

• 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:

Arthur Schopenhauer

A German philosopher best known for his book, "The World as Will and Representation," in which he characterizes the phenomenal world as the product of a blind, insatiable, and malignant metaphysical will.

Immanuel Kant

A key figure in modern philosophy who argued that human understanding shapes our experience of the world.

Most Real

A concept in metaphysics referring to the ultimate nature or essence of reality, as opposed to appearances or illusions.

Tests

Procedures or methods used to assess the presence, quality, or truth of something, often referring to examinations measuring knowledge, performance, or physical condition.