Reference no: EM132245544
The college suspects their star player James Strongarm has used an illegal performance-enhancing drug. Currently, the probability that James is a drug user is 0.37. They consider barring him from athletics. The “monetary” values of the outcomes are difficult to assess in this case. Therefore, instead of expressing the payoffs as money, we will use just numbers with unknown unit. The following are the payoffs for the potential outcomes: Correctly identifying a drug user and barring this person from athletics: 40 Falsely accusing a nonuser and barring this person from athletics: -60 Not identifying a drug user and allowing this person to participate in athletics: -30 Not barring a nonuser: 0 Before they make the decision, they can ask for a drug test, which costs -1 per single athlete . In the drug testing, assume there are two possible test results: positive and negative. For a drug user, the probabilities of these outcomes are 0.95 and 0.05, respectively. For a nonuser, they are 0.01 and 0.99, respectively. Assume that 2% of all college athletes are drug users. What is the best decision alternative? Question 5 options:
A) Forgo the test and bar him.
B) Forgo the test and do not bar him.
C) Take the test.Bar him if the result is positive; do not bar him if the result is negative.
D) Take the test, and do not bar him.
2. An expensive but powerful communication tool through which a multinational company's representative interacts one on one with customers to sell the multinational company's product is known as
Personal selling
E-commerce
Global business
International business strategy
3. To minimize the negative effects of the perceptual differences of receivers on interpersonal communication, managers should
A. use verbal communication instead of visual communication
B. preferably communicate using casual terms and references
C. try to send messages with precise meanings
D. use low involvement channels for communication
4. A well-designed business experiment to determine if a change in the color of packaging affects sales of a product should establish two of the following. Which 1 of the 3 items below doesn’t apply?
A) The product must be re-launched in every market
b) There are no other external factors affecting sales of the product after the change in color.
c) Changing the color of the packaging and launching the marketing campaign today affects sales in subsequent time periods