Use the Information for the Question(s)below

question 82

Essay

Use the information for the question(s)below.
Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like to lease space in it.Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month.The cash flows from each of the businesses have approximately the same amount of risk.The business names,square footage requirements,and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:
-If your new strip mall will have 15,000 square feet of retail space available to be leased,to which businesses should you lease and why?

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented alongside an unconditioned stimulus that elicits a natural response.

Extinction

In behavioral psychology, the diminishing of a conditioned response when the reinforcement or association is removed.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Fear Conditioning

A behavioral paradigm in which organisms learn to predict aversive events, linking a neutral stimulus with a fear-inducing situation.