​Use the Following Information for Question

question 37

Multiple Choice

​Use the following information for question
Transcendent Technologies is deciding between developing a complicated thought-activated software,or a simple voice-activated software.Since the thought-activated software is complicated,it only has a 30% chance of actually going through to a successful launch,but would generate revenues of $50million if launched.The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million.The complicated technology costs 10million,whereas the simple technology costs 2million.
-​If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the cost by 5.5million and increasing the probability of a launch to 50%.Is it worth for the firm to invest the $500,000 in tweaks?

• A)​No,because it decreases the total expected value
• B)Yes,because it increases expected value
• C)No,because it increases risk
• D)​Yes,because tweaking is good

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Definitions:

Significant Task

A task of great importance or consequence, often requiring considerable effort or resources to accomplish.

Necessary Skills

The essential abilities and competencies required to perform tasks or jobs effectively and successfully.

Decrease Job Satisfaction

The reduction in the level of contentment or happiness that an individual derives from their job or occupation.

Additional Duties

Responsibilities or tasks that are assigned to someone beyond their regular scope of work.