The Expected Value for

question 30

Multiple Choice

The expected value for
Small Investment $100,000+62,500+$2,500=$165,000
-Fairco, a family business, is considering making an investment in its manufacturing operation. Three decisions are under consideration: (1) a large investment; (2) a medium investment; and (3) a small investment. The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand; and (3) decreasing demand. The business believes that the probability for increasing, stable and decreasing product demand are 0.4, 0.5, and 0.1, respectively. The following payoff table describes the decision situation. The expected value for the medium investment decision is

• A) $600,000.
• B) $540,000.
• C) $330,000.
• D) $165,000.

Identify strategies for employee development and orientation.

Differentiate between forms and documents used in the hiring process.

Understand the implementation and purpose of programmed learning.

Identify types of interview questions and their objectives.

---

Definitions:

Consent Order

A legal document, approved by a judge, which formalizes an agreement reached between two parties in a dispute, without the need for a trial.

Disputed Behavior

Actions or conduct in question that are contested or challenged by parties in a disagreement.

Rule 10b(5) Violation

A breach of the SEC rule against fraud and deceit in the trading of securities.

Half-truth

A deceptive statement that includes some element of truth, used to mislead by omission.