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Brown’s TV Production is considering producing a pilot for a comedy series for a major network.  While the network may reject the pilot and series, it may also purchase the program for 1 or 2 years.  Brown may produce the pilot or transfer the rights for the series to a competitor for $100,000.  Brown’s profits are summarized in the following payoff table (profits in thousands).     sate of nature     reject 1 year  2 years produce pilot -100 50 150 sell to competitor 100 100 100 For a consulting fee of $2500, an agency will review the plans for the comedy series and indicate the overall chances of a favorable network reaction to the series.  Draw the decision tree for this revised decision problem.  Label the tree (actions, states of nature, payoffs);

Brown’s TV Production is considering producing a pilot for a comedy series for a major network.  While the network may reject the pilot and series, it may also purchase the program for 1 or 2 years.  Brown may produce the pilot or transfer the rights for the series to a competitor for $100,000.  Brown’s profits are summarized in the following payoff table (profits in thousands).     sate of nature     reject 1 year  2 years produce pilot -100 50 150 sell to competitor 100 100 100 For a consulting fee of $2500, an agency will review the plans for the comedy series and indicate the overall chances of a favorable network reaction to the series.  Draw the decision tree for this revised decision problem.  Label the tree (actions, states of nature, payoffs);

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 32P
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Brown’s TV Production is considering producing a pilot for a comedy series for a major network.  While the network may reject the pilot and series, it may also purchase the program for 1 or 2 years.  Brown may produce the pilot or transfer the rights for the series to a competitor for $100,000.  Brown’s profits are summarized in the following payoff table (profits in thousands).

    sate of nature  
  reject 1 year  2 years
produce pilot -100 50 150
sell to competitor 100 100 100

For a consulting fee of $2500, an agency will review the plans for the comedy series and indicate the overall chances of a favorable network reaction to the series.  Draw the decision tree for this revised decision problem.  Label the tree (actions, states of nature, payoffs); 

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