A Manager Is Attempting to Assess the Probability of a Recession

question 10

Multiple Choice

A manager is attempting to assess the probability of a recession ending in the next six months,and its impact on expected profitability.The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million.However,there is a 25 percent chance the recession will not end in six months,resulting in a $5 million loss.The standard deviation of profits over the next six months is:

• A) $175.37million.
• B) $320.18 million.
• C) $286.39 million.
• D) $0 million.

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Definitions:

Streaming Services

Platforms that deliver content over the internet, allowing users to watch TV shows, movies, and other media without downloading them.

Lifestyle Segmentation

A marketing strategy that divides the market based on the interests, activities, and opinions of consumers, to tailor products and communications.

Short Lead Time

The brief period between when an order is placed and when it is completed or delivered.

Short Exposure Time

The brief duration during which an audience is exposed to a promotional message or advertising content.