Four Entrepreneurial Students Want to Open a Shaved Ice Business

question 28

Multiple Choice

Four entrepreneurial students want to open a shaved ice business during the coming summer. Maxine thinks that demand will be high and therefore they should purchase a large stand and acquire a premium ice shaving machine. Minnie feels strongly that demand will be low and that they should purchase a tarp and some basic hand tools to work the ice. Midelia is pretty sure that demand will fall in-between these two extremes, so they can get by with a shack and a used ice shaving machine. Their financial wizard of the bunch, Probableah, has estimated the costs, revenues, and likelihoods of each level of demand and created the table shown below. What is the expected profit for this venture? $$\begin{array} { | l | c | c | c | } \hline { \text { Demand } } & \text { Total Revenue } & \text { Total Expenses } & \text { Probability } \\\hline \text { Low } & \$ 500 & \$ 15 & .2 \\\hline \text { Medium } & \$ 2,000 & \$ 125 & .3 \\\hline \text { High } & \$ 5,000 & \$ 519 & .5 \\\hline\end{array}$$

• A)$1700
• B)$2300
• C)$2900
• D)$3300

---

Definitions:

Sexually Abused

describes an individual who has experienced unwanted or forced sexual activity by another.

Warning Sign

An indication or alert of potential danger, problem, or need to stop.

Physical Contact

Direct touching or interaction between individuals, which can range from casual to intimate in nature.

Less Talkative

Describes individuals who speak infrequently or with few words, often due to personality traits or personal choice.