You Are a Hotel Manager and You Are Considering Four

question 107

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. $$\begin{array} { | l | l | l | } \hline \text { Praject } & \begin{array} { l } \text { Bamn } \\( 50 \% ) \end{array} & \begin{array} { l } \text { Recession } \\( 50 \% ) \end{array} \\\hline \text { A } & \$ 20 & - \$ 10 \\\hline \text { B } & - \$ 10 & \$ 20 \\\hline \text { C } & \$ 30 & - \$ 30 \\\hline \text { D } & \$ 50 & \$ 50 \\\hline\end{array}$$ A risk-neutral manager will prefer project:

• A)A.
• B)B.
• C)C.
• D)D.

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Definitions:

Social Cognitive Theory

A psychological model of behavior that emphasizes the role of observational learning, imitation, and self-efficacy in the development of personality and behavior.

Organizational Behaviour Modification

A systematic approach to changing behaviors within an organization through reinforcement strategies.

Organizational Behaviour Modification

A method used in organizational management that involves altering employees' behaviors through a system of rewards and punishments.

Task Performance

The execution and completion of specific duties or responsibilities associated with one's job or role effectively and efficiently.