You Are a Hotel Manager and You Are Considering Four

question 37

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-averse manager will prefer project:

• A)A.
• B)B.
• C)C.
• D)D.

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Definitions:

Rigidity

The lack of flexibility or adaptability in thinking, systems, or physical objects.

Discipline

The practice of training oneself or others to obey rules or norms by using a system of rewards and punishments.

Crisis

A significant threat to operations or resources, requiring urgent attention and decision-making to mitigate its effects.

Administrative Details

The routine, often clerical work that supports the operation of an organization, such as filing, scheduling, or managing records.