You Are a Hotel Manager Considering Four Projects That Yield

question 62

Multiple Choice

You are a hotel manager 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. $$\begin{array} { | l | l | l | } \hline \text { Praject } & \begin{array} { l } \text { Bamn } \\( 50 \% ) \end{array} & \begin{array} { l } \text { Recession } \\( 50 \% ) \end{array} \\\hline \text { A } & \$ 40 & - \$ 20 \\\hline \text { B } & - \$ 10 & \$ 30 \\\hline \text { C } & \$ 50 & - \$ 50 \\\hline \text { D } & \$ 60 & \$ 60 \\\hline\end{array}$$ Which project has the highest variance?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 7 and 12, where children gain the ability to think logically about concrete events.

Religious Development

The process and stages of integrating religious beliefs, practices, and values into one's life span and identity formation.

Indifferent

Describes a state of neutrality or lack of preference towards a person, object, or situation.

Rejecting Behaviors

Actions or attitudes that dismiss, ignore, or degrade another individual, often leading to negative psychological effects on the recipient.