The National Sales Manager for "I Colored This" (ICT) T-Shirts

question 87

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the following opportunity loss table showing the potential lost profit for each purchase decision or act from one to four dozen T-shirts. The probability of demand for each state of nature is also shown. What is the expected opportunity loss of purchasing two dozen T-shirts?

• A) 84
• B) 108
• C) 156
• D) 204

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Definitions:

Reimburse

To repay money that has been spent or lost, often associated with expenses incurred during employment or other approved activities.

Redecorating

Redecorating involves making changes to the decoration of an interior space, such as altering its style, layout, or furnishings, to refresh or update its appearance.

Expenses

Costs incurred during the operation of a business or the execution of a task.

Passive Fraud

A failure to reveal some material fact about the subject matter of a contract that one party is obligated to reveal to the other party and that intentionally deceives that second party, leading him or her into a damaging contract. Also called concealment and nondisclosure.