You Are a Hotel Manager and You Are Considering Four

question 141

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 B is:

• A) $5.
• B) $10.
• C) $20.
• D) None of the answers are correct.

---

Definitions:

Paralanguage

The aspects of spoken communication that do not involve words but do affect meaning, such as tone, pitch, and speed of speaking.

Culturally Patterned

Behaviors, beliefs, or norms that are systematically organized and shared by a group, shaping their way of life.

Animal Communication

The transfer of information between animals of the same species or different species through various means such as sounds, gestures, or chemical signals.