The Operations Manager for a Local Bus Company Wants to Decide

question 98

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 his expected value of perfect information?

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

---

Definitions:

Characters, Setting

Fundamental elements of storytelling and narrative design, where characters are the individuals or entities involved, and the setting is the time and place in which the story occurs.

Cision

A global provider of software and services to public relations and marketing professionals for media management, monitoring, and analytics.

Fact Sheets

Concise documents providing essential information on a specific subject, often used in public relations to present key messages and statistics.

PR Writing

PR Writing involves crafting communication materials to manage and enhance the public image of an organization or individual.