Consider the Following to Answer the Question(s) Below

question 23

Multiple Choice

Consider the following to answer the question(s) below:
A farm owner who grows summer vegetables (e.g. tomatoes) must decide whether to employ additional pickers this season. If he does, he could hire either migrant workers or local teenagers who need summer employment. The migrant workers are more experienced, faster, but more expensive. Although the teenagers will work for less, they are not as experienced and tend to damage plants and produce. His profits, taking into account losses from unpicked perished or damaged produce, depend on whether there is a good or bad growing season. The payoffs are shown in the table below.
-Suppose the Farmers' Almanac predicts the probability of a good growing season this year to be 0.75. What is the expected value of hiring teenagers?

• A) $62,500
• B) $52,500
• C) $46,250
• D) $12,990
• E) Indeterminate.

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Definitions:

Life Positions

Psychological stances or attitudes toward oneself and others, based on early experiences, that influence interaction and communication patterns.

Eric Berne

A psychiatrist best known for developing the theory of Transactional Analysis, which explores the dynamics of interpersonal relationships.

Overall Sense

A general feeling or perception about something.

Politeness Theory

A theory that explores how individuals save face for themselves and others when engaging in social interaction, particularly in communication.