Jan's Dry Cleaning Holds $10,000 on a Typical Day, Although

question 25

Multiple Choice

Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be used to purchase government bonds earning 5 percent, then how much money should Jan's hold?

• A)$10,000
• B)$8,000
• C)$6,000
• D)$4,000

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Definitions:

Operant Conditioning

Learning procedure in which the consequences (such as obtaining a reward) of a particular behavior (such as pressing a bar) increase or decrease the probability of the behavior occurring again; also called instrumental conditioning.

Reward Good Behavior

The process of positively reinforcing desired actions or conduct by offering incentives or praise, often used in training and behavior modification.

Extra Recess

Additional break time given to students during the school day, beyond the regular scheduled recess, for physical activity, relaxation, or social interaction.

Eyeblink Conditioning

Experimental technique in which subjects learn to pair a formerly neutral stimulus with a defensive blinking response.