You Are a Hotel Manager Considering Four Projects That Yield

question 145

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. $$\begin{array} { | l | l | l | } \hline \text { Praject } & \begin{array} { l } \text { Bamn } \\( 50 \% ) \end{array} & \begin{array} { l } \text { Recession } \\( 50 \% ) \end{array} \\\hline \text { A } & \$ 40 & - \$ 20 \\\hline \text { B } & - \$ 10 & \$ 30 \\\hline \text { C } & \$ 50 & - \$ 50 \\\hline \text { D } & \$ 60 & \$ 60 \\\hline\end{array}$$ If a manager adopted both project A and project B simultaneously,the expected value of this joint project would be:

• A) $20.
• B) $30.
• C) $40.
• D) None of the statements are correct.

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Definitions:

Ovulation

The process in the female menstrual cycle where a mature egg is released from the ovary, making it available for fertilization.

LH

Luteinizing hormone, a hormone secreted by the anterior pituitary gland that plays a key role in controlling the function of ovaries in women and testes in men.

Corpus Luteum

A temporary endocrine structure in female ovaries, formed after ovulation, which secretes hormones, primarily progesterone, to maintain early pregnancy.

Sperm

Male gametes responsible for fertilizing female gametes during sexual reproduction.