IBM IncHas a Project That Costs $150,000

question 56

Multiple Choice

IBM Inc.has a project that costs $150,000.It has a 50% chance of paying off $300,000 and a 50% chance of paying off $50,000.What is the expected payoff and the expected profit or loss from the new project?

• A)The expected payoff is $175,000 and the expected profit is $25,000.
• B)The expected payoff is $25,000 and the expected profit is $25,000.
• C)The expected payoff is $175,000 and the expected loss is $175,000.
• D)The expected payoff is $100,000 and the expected loss is $10,000.

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Definitions:

Personal Responsibility

The concept emphasizing an individual's obligation to manage their own actions, decisions, and well-being in various aspects of life.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources within their interpersonal relationships.

Motivation

The psychological process that arouses and directs goal-oriented behavior.

Perceived Inequity

A feeling or perception that one's inputs or contributions are not being rewarded or recognized fairly relative to others.