Ann Is a Manager at a Private Construction Company

question 1

Multiple Choice

Ann is a manager at a private construction company. David works in the city planning department of the government. Based on this information, which of the following is most likely to be true?

• A) David will make decisions based on the value generated to shareholders.
• B) Ann will not have to factor in risk or uncertainty when making a decision.
• C) David will make decisions based on maximization of profit.
• D) Ann's decisions will be guided by the motive of social welfare.
• E) David will make decisions based on benefit-cost analysis.

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Definitions:

Type I Error

The statistical error that occurs when a true null hypothesis is incorrectly rejected.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a given situation, used as a basis for testing.

Life Insurance

A contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.

Professional Men

Individuals who are males working within their expertise or occupation, often requiring specialized education and training.