Home / Questions / Please solve, i am confused Problem 13-19 (Algorithmic) Hale's TV Productions is considering pro
Please solve, i am confused
Problem 13-19 (Algorithmic) Hale's TV Productions is considering producing a pilot for a comedy series in the hope of selling it to a major television network. The network may decide to reject the series, but it may also decide to purchase the rights to the series for either one or two years. At this point in time, Hale may either produce the pilot and wait for the network's decision or transfer the rights for the pilot and series to a competitor for $200,000. Hale's decision alternatives and profits (in thousands of dollars) are as follows State of Nature 1 Year, S2 Years, S3 Reject, S1 Decision Alternative Produce pilot, di -150 150 450 Sell to competitor, d2 200 200 200 The probabilities for the states of nature are P(S1) 0.20, P(S2) 0.30, and P(S3) = 0.50. For a consulting fee of $55,000, an agency will review the plans for the comedy series and indicate the overall chances of a favorable network reaction to the series. Assume that the agency review will result in a favorable (F) or an unfavorable (U) review and that the following probabilities are relevant: P(S1|F) 0.06 P(F) 0.67 P(S1U) = 0.47 P(U) 0.33 P(S2F)= 0.25 P(S2IU) = 0.31 P(S3 F) 0.69 P(S3U)= 0.22 b. What is the recommended decision if the agency opinion is not used? What is the expected value? Enter your answer in thousands of dollars. Recommended decision Expected Value $ thousands. c. What is the expected value of perfect information? Enter your answer in thousands of dollars. thousands. EVPI $ d. What is Hale's optimal decision strategy assuming the agency's information is used? If Favorable If Unfavorable e. What is the expected value of the agency's information? Round your answer to two decimal places. Enter your answer in thousands of dollars EVSI $ thousands. f. Is the agency's information worth the $55,000 fee? What is the maximum that Hale should be willing to pay for the information? Decision thousands. Round your answer to two decimal places. Enter your answer in thousands of dollars Hale should pay no more than $
Apr 01 2020 View more View Less
Zhdanov Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is ex...
Jun 02 2021Let's review the three types of legal business organization-sole proprietorships, partnerships, and corporations. What are advantages and disadvantages of each and provid...
May 26 2021Kim went to Ling's Market to pick up a few items for dinner. It was a stormy day, and the wind had blown water through the market's door each time it opened. As Kim enter...
Aug 18 2021What is cybersquatting, and when is it illegal?
Aug 18 2021calculate volume of hydrogen and oxygen from water electrolysis at STP and AT 300 atm and 40*ccurrent 25 A, and duratin 12 hoursAnode reaction:4OH-(aq)—-> O2(g)+ 2H2O(l) ...
Apr 17 2020Suppose you have $80,000 in cash, and you decide to borrow another $40,000 at a 5% riskless interest rate to invest in a market index fund. The market index fund has an e...
Aug 10 2021Write the preferred plural forms of the following nouns in the spaces provided. Use a dictionary if necessary.knife ________
Jun 15 2021Which of the following was not a reform sought from the Spanish government by the propagandists? A. Basic human rights for the Filipinos B. Change of government from ab...
Jul 10 2021In a mixed market economy, what is a typical way the government can reduce unemployment?
Jun 12 2021Choose the correct option. Then compare your responses with the key at the end of the book.The cheetah is the only cat in the world that cannot retract (a) its, (b) it's claws.
Aug 23 2021