Ray Crofford Is Evaluating Investment Alternatives to Invest $100,000 Which

question 39

Multiple Choice

Ray Crofford is evaluating investment alternatives to invest $100,000 which he inherited from his grandfather.His investment advisor has identified four alternatives and constructed the following payoff table which shows expected profits (in $10,000's) for various market conditions. If Ray uses the maximin criterion,the appropriate choice would be ________.

• A)T-Bills
• B)Stocks
• C)Bonds
• D)Mixture
• E)None

---

Definitions:

Scientific Management

Developed in the 1910s by Frederick W. Taylor, is a system for improving productivity. After analyzing the movements of workers as they did their jobs, Taylor trained them to eliminate unnecessary actions. This technique is also known as Taylorism.

Productivity

A measure of the efficiency of production, often quantified as the ratio of inputs to outputs in economic terms.

Taylorism

A theory of management that analyzes and synthesizes workflows, with the primary objective of improving economic efficiency, especially labor productivity.

Fordism

Is a method of industrial management based on assembly-line methods of producing inexpensive, uniform commodities in high volume.