Advanced Placement (AP)
[Chairman Gonzalo]: I think this question deserves a detailed explanation. Concerning the party, Chairman Mao teaches usas did Marx, Lenin, and all the great Marxiststhat the party is not a mass party, though it has a mass character. It has a mass character in the sense that while being a select organizationa selection of the best, of the proven, of those, as Stalin said, who have what it takesbeing numerically small in proportion to the broad masses, the party defends the interests of the proletariat in taking responsibility for its emancipation, which can only come with communism. But since other classes that make up the people also participate in the revolution, the party defends their interests as well.[El Diario]: Chairman, lets talk about the peoples war now. What does violence mean to you?[Chairman Gonzalo]: We see the problem of war this way: war has two aspects, destructive and constructive. Not to see it this way undermines the revolutionweakens it. From the moment the people take up arms to overthrow the old order, the reaction [state] seeks to crush, destroy, and annihilate the struggle, and it uses all the means at its disposal, including genocide. We have seen this in our country. We are seeing it now and will continue to see it until the outmoded Peruvian state is demolished.Interview with Chairman Gonzalo [Manuel Rubn Abimael Guzmn Reynoso], leader of the Shining Path, a Peruvian revolutionary movement, 1988. The interview was conducted by the Peruvian newspaper El Diario, which was the unofficial newspaper of the Shining Path movement.Which of the following explains the most likely purpose of Gonzalo's answer to the second question in the interview?
A supermarket operator must decide whether to build a medium size supermarket or a large supermarket at a new location. Demand at the location can be either average or favourable with estimated probabilities to be 0.35 and 0.65 respectively. If demand is favorable, the store manager may choose to maintain the current size or to expand. The net present value of profits is $623,000 if the firm chooses not to expand. However, if the firm chooses to expand, there is a 75% chance that the net present value of the returns will be 330,000 and 25% chance the estimated net present value of profits will be $610,000. If a medium size supermarket is built and demand is average, there is no reason to expand and the net present value of the profits Is $600,000. However, if a large supermarket is built and the demand turns out to be average, the choice is to do nothing with a net present value of $100,000 or to stimulate demand through local advertising. The response to advertising can be either unfavorable with a probability of 0.2 or faverable with a probability of 0.8. If the response to advertising is unfavorable the net present value of the profit is ($20,000). However, if the response to advertising is favourable,then the net present vale of the profits in $320,000. Finally, if the large plant is built and the demand happens to be high the net present value of the profits is $650.000. Dram a decision tree and determine the most appropriate decision for this company.
