Lisa Is Trying to Decide on the Location of Her

question 84

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, which location should Lisa choose?

• A) Lisa should choose location A.
• B) Lisa should choose location B.
• C) Lisa should choose location C.
• D) Lisa should choose either Location A or B because both are viable.
• E) Lisa should choose either Location A or C because both are viable.

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Definitions:

Encoding Variability

A principle that suggests variations in the context of learning can enhance the memory of the information learned.

Spacing Effect

A phenomenon in which recall of material that is presented repeatedly is superior when the presentations are some time apart rather than immediately following one another.

Context Effects

The influence of environmental factors on one's perception, cognition, or behavior.

Explicit Memory

Memory that involves conscious recollection of previous experiences, facts, or information, such as remembering names or historical dates.