A television network earns an average of $1.6 million each season from a hit program and loses an average of $400,000 each season on a program that turns out to be a flop, and of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. a) Construct a decision tree to help the television network identify the strategy that maximizes its expected profit in responding to a newly proposed television program. Make sure to label all decision and chance nodes and include appropriate costs, payoffs and probabilities. b) What should the network do? What is their expected profit?

A television network earns an average of $1.6 million each season from a hit program and loses an average of $400,000 each season on a program that turns out to be a flop, and of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. a) Construct a decision tree to help the television network identify the strategy that maximizes its expected profit in responding to a newly proposed television program. Make sure to label all decision and chance nodes and include appropriate costs, payoffs and probabilities. b) What should the network do? What is their expected profit?

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.2: Dick’s Sporting Goods Scores With Stores Within Stores

Problem 1C

See similar textbooks

Similar questions

Suppose you are a manager in some leading firm / organization. The owner of the firm wants you to uplift the profit of the firm by introducing some new commodity in the market. Explain all decision making process relating to successfully introducing your commodity in the market.
The portfolio model based on executive perceptions rather than sales data is the: a. enron model b General Electric/McKinsey Model c. BCG Model d. Worldcom model..
The purpose of the Maricopa Association of Governments (MAG) is to achieve which of the following? It is a charter government association for the county. It is an organization that receives state funds for county projects. It is a group that meets to collaborate on project ideas. It is the largest Council of Government (COG) in Arizona and is a regional planning agency for funds received from the federal government.
Exclusive Footwear Ltd experiencing profit declining in recent times... In the light of the above research, suggest a list of variables (e.g. IV, DV, or MV), develop conceptual model, and discuss their nature and potential relation to each other with proper justification. Develop relevant hypothesis for the variables.
Wired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown. Decision Profits($) Strong Marked Fair Market Poor Market Large-sized facility Medium-sized facility Small- sized facility No facility 450,000 2500,000 350,000 0 220,000 150,000 150,000 0 -310,000 -250,000 -80,000 0 What decision should be made using the LaPlace criterion?
How is EMV calculated for these steps. What is the probability and impact in these questions. 1) Should you play at all? (5%) If you play, what is your expected (net) monetary value? (15%)2) If you play and don't win at all on the first try (but don't lose money), should you try again? (5%) Why? (10%)3) Clearly show the decision tree (40%) and expected net monetary value at each node (25%) If you send in your entry before midnight tonight, then here are your chances: 0.1% that you win $1,000,000 75% that you win nothing Otherwise, you must PAY $1,000 But wait, there's more! If you don't win the million AND you don't have to pay on your first attempt, then you can choose to play one more time. If you choose to play again, then here are your chances: 2% that you win $100,000 20% that you win $500 Otherwise, you must PAY $2,000
Over the years, the food company Nestle’s Maggi Noddles which are high marketshare with low growth markets. The company with a market share of 80-85 %, MaggiNoddles holds a very strong hold in the market and have high customer loyalty. Theproduct requires very less investment to maintain its market share and fight off anycompetition.In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee fall inthe high market share in high growth industry. Growing healthier lifestyle trends andemerging markets have prompted the brand to invest large amounts of investments inorder to differentiate the bottled water brands from competitors in mature markets andgrow brand awareness in emerging markets.There are products that formulate a part of the industry that is still in the phase ofdevelopment, yet the organization has not been able to create a significant position inthat industry. The small market share obtained by the organization makes the futureoutlook for the product uncertain,…
A random sample of 10,000 customers was selected over a six month period. The data provides information on their current status with the bank as well as 12 additional attributes describing their demographic and banking information. what are the key predictors the bank should be aware of with their customers? Examples are included, but not limited to:Are female customers leaving more than males? Is there indication of customer departures associated with specific countries?Is there evidence of salary associated departures? what is an appropiate marketing strategy to attract and retain long term customers
I want to answer to solve ㅠㅠㅠㅠ. Q1. A builder has located a piece of property that she would like to but and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities Cost of land $2 MillionProbability of rezoning .6If the land is rezoned, there will be additional costs for new roads, lighting, and so on of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,500 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70% chance that she can sell the shopping center to a large department store chin for $4 million over her construction cost, which excludes the land; and there is a 30% chance that she can…
An electronics factory operates on four production lines: laptops, mobiles, desktop computers, smart boards, and there were three cases of demand (weak, medium, and high), and the matrix of returns was as follows: Laptops Mobiles Risk Desktop Computers Smart Boards High 40 45 35 30 Economic state Medium 25 15 30 20 1. The problem presented above is decision-making under Certainty Uncertainty Weak 10 5 -10 -5 Save All Answers Save and Submit
The company’s marketing manager estimates that there is a 60% chance that demand will rise faster than the current rate, a 30% chance that it will continue to rise at the current rate and a 10% chance that it will increase at a slower rate or fall. Assuming that the company’s objective is to maximize expected net present value, determine (a)The course of action which it should take (b)The expected value of perfect information.
1) A television network earns an average of $1.6 million each season from a hit program and loses an average of $400,000 each season on a program that turns out to be a flop, and of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. a) Construct a decision tree to help the television network identify the strategy that maximizes itsexpected profit in responding to a newly proposed television program. Make sure to label all decisionand chance nodes and include appropriate costs, payoffs and probabilities. b) What should the network do? What is their expected profit? c) The network can conduct market research to determine whether a program will be a hit or a flop. If the market research report is perfectly reliable, what is the most the network should be willing to pay for it? 2) A buyer for a large sporting goods store chain must place orders for professional footballs with the football manufacturer six months prior to the…