Decision Making Survey

Decision Making Survey

Please answer the following questions on your own:

1- You are lying on the beach on a hot day. All you have to drink is ice water. For the last hour, you have been thinking about how much you would enjoy a nice cold bottle of your favorite brand of juice. Your friend offers to make a phone call to bring the juice from the only nearby place – a resort hotel where juice is sold. He says that the juice might be expensive and asks how much you are willing to pay for it. He says that he will buy the juice if it costs as much as or less than the price you state. But if costs more than the price you state, he will not buy it. You trust your friend, and there is no possibility of bargaining with the hotel.

What price do you tell him?   (L.E) 30[pic 1]

2- Suppose you are vice president of a large company that has recently been hit with a number of financial difficulties. It appears as if three plants need to be closed and 6,000 employees be fired. As vice president, you have studied different alternatives in order to avoid this crisis and finally you reached the two following plans:

Plan A: This plan will save one of the three plants and 2,000 jobs.

Plan B:  This plan has a 1/3 probability of saving all three plants and all 6,000 jobs, but has a 2/3 probability of saving no plants and no jobs.

Which plan do you choose?  [Pick one using √ ]

• [    ] Plan A

 [    ] Plan B[pic 2]

3-Imagin you are shopping for dinnerware set and there is a sale at a local store where dinnerware sets are sold. You have chosen to buy the luxury line of dinnerware set. Please indicate below the maximum price you are willing to pay for the following dinnerware set:

Luxury set includes (24 pcs)

Dinner plates: 8 pcs, all in good condition

Soup/ salad bowls: 8 pcs, all in good condition

Desert plates: 8 pcs, all in good condition

Price willing to pay (L.E) 1000