You Are a Hotel Manager and You Are Considering Four

question 112

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 variance in the returns of project B is:

• A) 900.
• B) 225.
• C) 0.
• D) 1,600.

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Definitions:

Attitudes

A psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor.

Lasting Changes

Refers to permanent or enduring alterations in an individual, system, or environment over time.

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a social context.

Developmental Psychology

A branch of psychology that studies how people grow and change over the course of their life, from infancy to old age.