If the Cost of Replacing a Defective Z-Box Game Once

question 45

Multiple Choice

If the cost of replacing a defective Z-box game once it has been shipped is $5.00, while the cost of complete (100%) inspection prior to shipment is $.20 each, at what point is he indifferent between complete inspection and shipment without inspection?

• A)0% defectives
• B)4% defectives
• C)5% defectives
• D)9% defectives
• E)22% defectives

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Definitions:

Imaginary Audience

A concept in adolescent psychology where an individual believes that his or her behavior is the focus of everyone else's attention.

Personal Fable

A form of adolescent egocentrism, involving a belief in the uniqueness of one's own feelings and immortality.

Formal Operations

The last phase of cognitive development according to Piaget's theory, marked by the capacity for abstract, logical, and systematic thinking.

Introspection

The examination or observation of one's own mental and emotional processes.