The Owner of Tastee Cookies Needs to Decide Whether to Lease

question 87

Multiple Choice

The owner of Tastee Cookies needs to decide whether to lease a small, medium, or large new retail outlet. She estimates that monthly profits will vary with demand for her cookies as follows: $\begin{array}{|l|l|l|l|}\hline\text {SIZE}\\\text {OF}&\text {DEMAND}\\\hline \text { OUTLET } & \text { LOW } && \text { HIGH } \\\hline \text { Small } & \$ 1,000 && 1,000 \\\hline \text { Medium } & 500 && 2,500 \\\hline \text { Large } & 0 && 3,000 \\\hline\end{array}$ For what range of probability that demand will be high, will she decide to lease the large facility?

• A) 0-.25
• B) 0-.33
• C) .25-.5
• D) .33-1
• E) .5-1

---

Definitions:

Psychoactive Drugs

Substances that can alter perception, mood, consciousness, cognition, or behavior by affecting the brain's chemical structure.

Mental Functioning

The range of cognitive, emotional, and behavioral activities that an individual engages in.

Perceptions

The way in which something is regarded, understood, or interpreted by the mind.

Cataplexy

A sudden and temporary episode of muscle weakness or paralysis often triggered by strong emotions such as laughter, typically associated with narcolepsy.