Building, keeping, and growing profitable value-laden relationships with all customers of a company is called _______

________ refers to how people make decisions in a lottery or with uncertainty. People do not generally make expected value decis

allsm [11]

Answer:

The correct answer is c. Prospect theory.

Explanation:

Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.

Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.

4 0

2 years ago

A man needed money to buy lawn equipment. He borrowed $700.00 for five months and paid $53.95 in interest. What was the rate o

Westkost [7]

Answer: The rate of interest per year is 18.49 %.

Explanation:

To calculate the rate of interest, we use the equation:

$\text{Interest paid}=\text{Amount borrowed}\times \text{Rate of interest}\times \text{Time}$

where,

Interest paid = $ 53.95

Amount borrowed = $ 700

Rate of interest = ?

Time = 5 months = $\frac{5}{12}$ (Conversion factor: 1 yr = 12 months)

Putting values in above equation, we get:

$\$53.95=\$700\times \text{Rate of interest}\times \frac{5}{12}\\\\\text{Rate of interest}=0.1849\times 100=18.49\%$

Hence, the rate of interest per year is 18.49 %.

8 0

2 years ago

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams est

exis [7]

Answer:

$364,980

Explanation:

Computation for the amount of under- or overapplied overhead for the year.

First step is to calculate the

Predetermined Overhead using this formula

Predetermined Overhead rate = Estimated overhead/direct labor estimated

Let plug in the formula

Predetermined Overhead rate= 358,900/227,000

Predetermined Overhead rate= 158% of direct labor cost

Now let determine the Overhead applied

Overhead applied = $231,000*158%

Overhead applied= $364,980

Therefore the amount of under- or overapplied overhead for the year is $364,980

4 0

2 years ago

A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000, $36,000, $80,000, $10,000,

gogolik [260]

Answer:

48.65%

Explanation:

Given Income are written in increasing order

First Quintile 10,000 12,000

Second Quintile 16,000 18,000

Third Quintile 24,000 24,000

Fourth Quintile 36,000 50,000

Fifth Quintile 80,000 100,000

Total Income % share

First Quintile 10,000 12,000 22,000 5.95

Second Quintile 16,000 18,000 34,000 9.19

Third Quintile 24,000 24,000 48,000 12.97

Fourth Quintile 36,000 50,000 86,000 23.24

Fifth Quintile 80,000 100,000 180,000 48.65

Total income in the economy 370,000 100%

The percentage of the total income of the highest quintile is 48.65%

4 0

2 years ago

"At High Flyer Airlines, managers rate their subordinates on a continuum from 1 to 7. A score of 1 indicates unsatisfactory perf

Vladimir [108]

Answer:

<h2>The answer,in this case would be Graphic Rating Scale or Likert Scale.</h2>

Explanation:

In a statistical research study,rating scale or likert scale is used indicate the intensity of magnitude of any variable or phenomenon related to the concerned research topic.
Rating scale or likert scale is commonly used in statistical research methods such as surveys or questionnaire where various options are presented to the respondents or participants and a corresponding numerical value associated with each response options.
The response options are scaled or ranked numerically according to the intensity or magnitude of the variable or the phenomenon which is included in the survey or questionnaire question.
In this instance,the subordinate performance has been scaled or ranked on a rating or likert scale from 1 to 7 which represent the numerical values associated with each rank or scale.

3 0

2 years ago

Building, keeping, and growing profitable value-laden relationships with all customers of a company is called ________.