Use the following to answer question:
-(Table: Choice with Uncertainty)Use Table: Choice with Uncertainty.Suppose that the probability that the sitcom does not make it to television is 60%,the probability that it makes it to television but is not the most viewed show in its time slot is 30%,and that the probability that it makes it to television and is the most viewed show in its time slot is 10%.Norman's expected total utility is _____ utils.
A)2,000
B)2,150
C)2,350
D)2,650

Question

Use the following to answer question: 
-(Table: Choice with Uncertainty)Use Table: Choice with Uncertainty.Suppose that the probability that the sitcom does not make it to television is 60%,the probability that it makes it to television but is not the most viewed show in its time slot is 30%,and that the probability that it makes it to television and is the most viewed show in its time slot is 10%.Norman's expected total utility is _____ utils.
A)2,000 
B)2,150 
C)2,350 
D)2,650

Quizplus · Accepted Answer

The expected utilities for each outcome are:
- Not making it to television: 0 utils
- Making it to television but not the most viewed show: 1,000 utils
- Making it to television and being the most viewed show: 3,000 utils

Using the probabilities given, we can calculate Norman's expected total utility as:
(0.6 x 0) + (0.3 x 1,000) + (0.1 x 3,000) = 300 + 100 = 400 utils
Therefore, Norman should choose to produce the sitcom, as it has the highest expected utility.

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