Which of the Following Statements Is Likely to Be Correct

question 55

Multiple Choice

Which of the following statements is likely to be correct for a decision tree that indicates a 30% chance of making a $250,000 profit and a 70% chance of sustaining a $140,000 loss?

• A) The decision should be yes whenever the amount of possible profit exceeds the amount of possible loss.
• B) The decision should be no whenever there is a possibility of loss.
• C) The expected value is positive before discounting.
• D) The expected value is negative before discounting.

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Definitions:

Product Category

A classification of products or services grouped together because of similarities in functionality or customer use.

Positioning Statement

A brief description of how a product or brand fills a particular consumer need in a way that its competitors do not.

Anticipated Retail Price

The expected price at which a product will be sold to the end consumer in retail markets.

Differentiation Positioning

Differentiation positioning is a marketing strategy where a brand establishes itself apart from competitors by emphasizing unique features, benefits, or aspects of its products or services.