You Are a Hotel Manager and You Are Considering Four

question 15

Multiple Choice

You are a hotel manager and you are considering four projects that yield different payoffs,depending upon whether there is an economic boom or a recession.The potential payoffs and corresponding payoffs are summarized in the following table. $$\begin{array} { | l | l | l | } \hline \text { Praject } & \begin{array} { l } \text { Bamn } \\( 50 \% ) \end{array} & \begin{array} { l } \text { Recession } \\( 50 \% ) \end{array} \\\hline \text { A } & \$ 20 & - \$ 10 \\\hline \text { B } & - \$ 10 & \$ 20 \\\hline \text { C } & \$ 30 & - \$ 30 \\\hline \text { D } & \$ 50 & \$ 50 \\\hline\end{array}$$ The expected value of project D is:

• A) $5.
• B) $10.
• C) $20.
• D) None of the answers are correct.

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Definitions:

Muscle

A tissue composed of fibers capable of contracting to produce movement or maintain the position of parts of the body.

Integument

Another term for the skin, which is the body's largest organ and serves as a protective barrier.

Malnourished

A condition where an individual's diet does not provide sufficient nutrients for health and well-being.

Immobile

Incapable of moving or being moved.