The Operations Manager for a Local Bus Company Wants to Decide

question 68

Multiple Choice

The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, moderate, or high, as follows.

If he uses Bayes' decision rule, which size bus will he decide to purchase?

• A) Small
• B) Medium
• C) Large
• D) Either small or medium
• E) Either medium or large

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Definitions:

Black-And-White Thinking

A cognitive distortion where an individual sees things in absolute terms, with no middle ground or shades of gray.

Reporting Abuse

The act of notifying authorities or designated organizations about the occurrence of abuse, whether it be physical, emotional, sexual, or neglect.

Reasonable Suspicion

A legal standard that allows authorities to conduct investigations or searches when they have grounds to believe that a person is linked to criminal activity, but not enough to warrant an arrest.

Governmental Agency

An organization that operates under the government to enforce laws, regulations, or provide community services.