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Two Professors at a Nearby University Want to Coauthor a New

question 208

Multiple Choice

Two professors at a nearby university want to coauthor a new textbook in either economics or statistics. They feel that if they write an economics book, they have a 50 percent chance of placing it with a major publisher, and it should ultimately sell about 40,000 copies. If they cannot get a major publisher to take it, then they feel they have an 80 percent chance of placing it with a smaller publisher, with ultimate sales of 30,000 copies. On the other hand, if they write a statistics book, they feel they have a 40 percent chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they cannot get a major publisher to take it, they feel they have a 50 percent chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies.
What is the expected value for the optimum decision alternative?

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Definitions:

Cognitive Psychologist

A professional who studies mental processes such as perception, thinking, memory, and reasoning, aiming to understand how people process and store information.

Past Consequences

The outcomes or results that have occurred as a result of actions or events in the past.

Cognitive Psychology

The branch of psychology that studies mental processes including perception, thinking, memory, and judgment.

Freudian Psychology

A school of thought developed by Sigmund Freud that emphasizes the importance of unconscious processes in shaping behavior, thoughts, and emotions.