Answer:
option (B) 0.012634
Explanation:
Data provided in the question:
Expected return Probability
16.5% 80%
-11.6% 20%
Now,
Mean return = ∑( Probability × Expected return )
= ( 0.8 × 16.5% ) + ( 0.2 × (-11.6%) )
= 13.2% - 2.32%
= 10.88%
Thus,
Variance = ∑(Probability × [ Expected return - Mean return ]² )
= 0.8 × ( 16.5% - 10.88% )² + 0.2 × ( -11.6% - 10.88% )²
= 0.8 × ( 5.62% )² + 0.2 × (-22.48%)²
= 0.8 × 0.0562² + 0.2 × 0.2248²
= 0.002526752 + 0.010107008
= 0.01263376 ≈ 0.012634
Hence,
The correct answer is option (B) 0.012634
Answer:
see explaination
Explanation:
1. A low-quality producer will not provide any warranty, because he knows there will be more warranty claims.
He will choose option B.
Example:
Option B:
Toaster sell 100
Price $10
Sales = $1000
Profit = $100 (let's say it costs him $9 to make it).
Toaster sell 35 (as 5 times high price).
Price $49
Sales = $1725
Warranty Expense (let's say, due to multiple times claims) = $1500
Profit = -$90 (let's say it costs him $9 to make it).
2. A high-quality producer will provide any warranty because he knows there will be very very few warranty claims.
He will choose option B.
3. Yes, the act of offering free warranty will go a long way in conveying a positive signal to customers that the brand is providing quality product & it trusts its product.
That would be incentives of entrepreneur
by definition, incentives mean something that motivates you to do a specific activity
In this case, personal satisfaction, following own passion, making more money are the incentives of an entrepreneur
Nordstrom will give client benefit as an approach to constructing the brand of an item and is the way for the client to maintain loyalty to Nordstrom. Alluding to marking, client benefit is frequently the last component and regularly the most ignored. This is a major oversight - and a major open door missed. Utilize client administration to fortify your image is a basic way, making organizations to end up plainly extraordinary, and increment mark dedication.
