At Midterm,a College Determines That 300 of Its Students Are

question 2

Multiple Choice

At midterm,a college determines that 300 of its students are at risk for suspension this semester.Its tutoring center argues that,with a series of targeted emails encouraging students to come in for help,it can promise to certainly save 100 of those students from suspension.However,an external firm approaches the college with an offer to start a new program,with a 1/3 chance of preventing all 300 students from being suspended (and a 2/3 chance of saving none of these students) .Under which circumstances is the college most likely to hire the external firm?

• A)the tutoring center and the external firm emphasize the number of students to be "saved" in their presentations
• B)the tutoring center and the external firm emphasize the number of students who will be suspended under each of their programs
• C)the tutoring center emphasizes the potential number of students to be suspended,while the external firm emphasizes the potential number of students saved from suspension
• D)both the tutoring center and the external firm place equal emphasis on the students to be "saved" and the students who will be suspended under each approach

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest.

Cost of Goods Sold

Cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Gross Profit Rate

The ratio of gross profit to net sales, expressed as a percentage, indicating the efficiency of a company in managing its direct costs.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.