You Are a Hotel Manager and You Are Considering Four

question 95

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 expected value of project A is:

• A) $5.
• B) $10.
• C) $20.
• D) None of the preceding statements is correct.

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Definitions:

Routine Situation

A scenario or circumstance that occurs regularly and is characterized by predictable patterns and a lack of novelty.

Job Description

A detailed summary of the duties, responsibilities, required qualifications, and reporting lines of a specific position within an organization.

Morphological Analysis

A method used to solve problems by breaking them down into their most basic components for analysis.

Creative Personality

Characteristics and traits associated with individuals who regularly produce novel and valuable ideas or solutions.