With choice S1, a manager sees gains of $10 million and $6 million.With choice S2, a manager sees gains of $12 million and $3 million.The manager chooses S2, so she must be optimistic.

Question

Quizplus · Accepted Answer

Since S2 has a higher gain in total ($15 million) compared to S1 ($16 million), the manager's choice does not necessarily indicate optimism or pessimism. It's simply a logical decision based on the potential gains.

With Choice S1, a Manager Sees Gains of $10 Million