The Operations Manager for a Local Bus Company Wants to Decide

question 8

Multiple Choice

The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows:
If he feels the chances of low, medium, and high demand are 30 percent, 30 percent, and 40 percent respectively, what is the expected annual profit for the bus that he will decide to purchase?

• A) $15,000
• B) $61,000
• C) $69,000
• D) $72,000
• E) $87,000

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Definitions:

Language Development

The method through which young children learn to comprehend and express language in their early years.

Middle Childhood

A developmental stage in children typically ranging from ages 6 to 12, characterized by significant growth in social, cognitive, and physical domains.

Information-Processing Approach

A theory that likens the human mind to a computer, regarding thought and knowledge as information going through systematic processing steps.

Cognitive Development

The progression of developing and transforming cognitive capabilities, including the ability to think, reason, and comprehend.