A company that manufactures designer jeans is contemplating whether to increase its advertising budget by $1 million for next year.If the expanded advertising campaign is successful,the company expects sales to increase by $1.6 million next year.If the advertising campaign fails,the company expects sales to increase by only $400,000 next year.If the advertising budget is not increased,the company expects sales to increase by $200,000.Identify the outcomes in this decision-making problem.
A)Two choices: (1)increase the budget and (2)do not increase the budget.
B)Two possibilities: (1)campaign is successful and (2)campaign is not successful.
C)Four consequences resulting from the Increase/Do Not Increase and Successful/Not Successful combinations.
D)The increase in sales dollars next year.

Question

Quizplus · Accepted Answer

The decision-making problem involves two choices (increase or do not increase the budget) and two possibilities (successful or not successful campaign), resulting in four consequences.

A Company That Manufactures Designer Jeans Is Contemplating Whether to Increase