Which Option Should Joan Choose in Order to Maximize Income

question 71

Multiple Choice

Which option should Joan choose in order to maximize income assuming there is a 40% probability that 70 units will be sold and a 60% probability that 40 units will be sold?

• A) Option one with expected operating income of $1,200
• B) Option two with expected operating income of $1,810
• C) Option three with expected operating income of $3,640
• D) Option three with expected operating income of $4,160
• E) Option two with expected operating income of $4,060

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Definitions:

Information Power

The influence or control one possesses over others due to the access or possession of valuable information.

Formal Systems

Structured and officially sanctioned procedures, rules, and policies designed to organize and regulate organizational operations and behavior.

Patterns of Activity

Recurring behaviors or actions undertaken by individuals or groups in specific contexts.

Power Bases

The sources of influence and authority an individual or organization possesses.