The National Sales Manager for "I Colored This" (ICT) T-Shirts

question 6

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts, provides all salespersons with the payoff table shown below, giving the estimated profit when a retailer purchases from 1 to 4 dozen T-shirts. The probability of demand for each state of nature is also shown. What is the maximum payoff under conditions of certainty?

• A) 120
• B) 240
• C) 360
• D) 480

---

Definitions:

Price Level

An index that measures the average prices of goods and services in an economy at a given time.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to a need for borrowing or using saved reserves.

Energy Prices

The cost of purchasing energy sources such as oil, gas, coal, and electricity, which can fluctuate based on demand, supply, geopolitical stability, and environmental policies.

Economic Contraction

A decline in national output as measured by GDP, often leading to higher unemployment and lower spending.