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Call centers have high turnover rates because of the stressful environment. The national average is approximately 50%. The director of human resources for a large bank has compiled data from about 70 former employees at one of the bank’s call centers (see the Excel file Call Center Data). Use PivotTables to find these statistics: The average length of service for males and females in the sample The average length of service for individuals with and without a college degree The average length of service for males and females with and without prior call center experienceTo determine the expected value decision regarding the car-rental situation, we need to calculate the expected cost associated with the potential accidents and then compare it to the alternative of not opting for insurance. Given the provided probabilities of a major accident (0.05%) and a fender bender (0.16%), we can calculate the expected cost for the car-rental situation as follows: Let's assume the costs associated with a major accident are significantly higher than those of a fender bender: Cost of major accident = $10,000 Cost of fender bender = $1,000 Probability of a major accident (P_maj) = 0.05% = 0.0005 Probability of a fender bender (P_fend) = 0.16% = 0.0016 Expected cost without insurance = Cost of major accident * P(major accident) + Cost of fender bender * P(fender bender)

Expected cost without insurance = $10,000 * 0.0005 + $1,000 * 0.0016 Expected cost without insurance = $5 + $1.6 = $6.6 Therefore, the expected cost without insurance is $6.6. Now, let's compare this expected cost without insurance to the cost of purchasing insurance. Suppose the insurance cost is $100. The expected cost of having insurance is simply the insurance cost itself, as the insurance covers the entire potential expense: Expected cost with insurance = Cost of insurance = $100 Comparing the two options: - Expected cost without insurance = $6.6 - Expected cost with insurance = $100 Given these figures, the expected value decision would be to purchase insurance, as it minimizes the expected cost. As for whether one should choose this option or not, it depends on the individual's risk aversion, financial situation, and personal preferences. In this scenario, the expected cost without insurance is relatively low ($6.6), but if someone wants to avoid the risk and potential financial burden of an accident, they might opt for insurance despite the higher upfront cost.

Regarding the DoorCo Corporation decision-making strategies (aggressive, conservative, and opportunity-loss), these are related to decision-making under uncertainty. 1. **Aggressive Strategy:** Under this strategy, DoorCo would choose the decision that maximizes potential gains, assuming a higher risk tolerance. In this case, considering the decline in demand scenarios, DoorCo would choose to move to Wisconsin as it offers the potentially lower cost in the scenario with a 40% decline ($750,000) compared to staying in Carmel ($840,000). 2. **Conservative Strategy:** This strategy involves minimizing potential losses, assuming a lower risk tolerance. In this scenario, DoorCo would opt to stay in Carmel, as it offers the least cost across all scenarios, ensuring a more conservative approach and potentially avoiding higher costs if the predicted declines do not occur as severely as anticipated. 3. **Opportunity-Loss Strategy:** This strategy focuses on minimizing the potential opportunity cost. DoorCo would assess the potential loss in each scenario and choose the decision that minimizes this loss. In this case, DoorCo might choose to move to Wisconsin as it offers the lowest cost in the scenario with a 40% decline, reducing the potential loss in that situation, even if it incurs higher costs in other scenarios. These strategies differ in their risk appetite and focus on either maximizing gains, minimizing losses, or considering opportunity costs under varying scenarios of uncertain future outcomes. The choice of strategy depends on DoorCo's risk tolerance, business goals, and confidence in the predictions about the decline in demand.

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