Container Company ​

question 48

Essay

Container Company ​
A company must decide whether or not to change its packaging to a more environmentally safe material.The impact of the decision on profits depends on which of the following three possible scenarios develops in the future. ​ Scenario 1: The media does not focus heavily on concerns about packaging and no new laws requiring changes in packaging are passed.Under this scenario,the company will make $35 million if they change their packaging now,but will make $75 million if they do not change their packaging now. ​ Scenario 2: The media does focus heavily on concerns about packaging and no new laws requiring changes in packaging are passed.Under this scenario,the company will make $50 million if they change their packaging now,but will make $55 million if they do not change their packaging now. ​ Scenario 3: The media does focus heavily on concerns about packaging and new laws requiring changes in packaging are passed.Under this scenario,the company will make $60 million if they change their packaging now,but will make only $15 million if they do not change their packaging now. ​ The prior probabilities of the three scenarios are 0.3,0.5,and 0.2,respectively. ​ ​
-{Container Company Narrative} Develop a payoff table for this decision situation.

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Definitions:

Persuasive Message

Communication aimed at influencing the attitudes, beliefs, or behaviors of others through reasoning, emotional appeals, or calls to action.

Thank-You Message

A courteous communication or note expressing gratitude or appreciation to another individual or group.

STAR Method

A technique used in interviews that stands for Situation, Task, Action, and Result, to structure responses to behavioral questions.

Behavioral Questions

Questions used in interviews that ask candidates to describe past behavior or actions as a predictor of future performance.