Lisa Is Trying to Decide on the Location of Her

question 81

Multiple Choice

Lisa is trying to decide on the location of her entrepreneurial venture - Flower Power, a specialty wedding flower service. She has three possible locations (A, B,C) in mind. Lisa has projected that in the first year of operation, under ideal conditions, her company would generate $80,000 at Location A, $55,000 at Location B, and $45,000 at Location C. However, after further analysis, Lisa has determined that there is only a 20 percent chance of ideal conditions occurring during the first year of operation in Location A. Locations B and C have a .4 and a .8 probability, respectively, for ideal conditions during the first year of operations. Based on this information, the expected value for Location A is ________, while for Location B it is ________.

• A) $400,000; $137,500
• B) $16,000; $22,000
• C) $64,000; $33,000
• D) $96,000; $77,000
• E) $320,000; $82,500

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Definitions:

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the attachment of the zygote to the uterine wall.

Zygote's Outer Cells

The cells on the periphery of a zygote (the earliest embryonic stage) that contribute to the development of the placenta and other supporting structures for the embryo.

Implantation

The process, beginning about 10 days after conception, in which the developing organism burrows into the uterus, where it can be nourished and protected as it continues to develop.

Fetus Survival

The viability or ability of a fetus to live outside the uterus, which may depend on gestational age, fetal health, and medical technology.