The Owner of Tastee Cookies Needs to Decide Whether to Lease

question 25

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 small facility?

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

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Harvard University

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Steven Pinker

Steven Pinker is an influential Canadian-American cognitive psychologist, linguist, and popular science author known for his works on language and the human mind.

University of Virginia

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Louisiana State University

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