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P-TV and QRS-TV Are Planning Their Fall Line-Up

Question 81

Multiple Choice

P-TV and QRS-TV are planning their fall line-up.Suppose that sit-coms are more popular than reality shows,and so generate more advertising revenue than do reality shows,but they are more expensive to produce since real actors must be hired.In the following decision tree,QRS-TV announces its decision first and P-TV observes that choice before it decides whether to air a sit-com in the same time slot or a reality show.Both stations know all of the information shown in this diagram when they make their decisions. P-TV and QRS-TV are planning their fall line-up.Suppose that sit-coms are more popular than reality shows,and so generate more advertising revenue than do reality shows,but they are more expensive to produce since real actors must be hired.In the following decision tree,QRS-TV announces its decision first and P-TV observes that choice before it decides whether to air a sit-com in the same time slot or a reality show.Both stations know all of the information shown in this diagram when they make their decisions.   Refer to the information above.Given the information in this decision tree,if QRS-TV announces that it will air a sit-com,it can expect to: A)  lose $5 million. B)  earn $5 million. C)  earn $10 million. D)  earn $20 million.
Refer to the information above.Given the information in this decision tree,if QRS-TV announces that it will air a sit-com,it can expect to:


A) lose $5 million.
B) earn $5 million.
C) earn $10 million.
D) earn $20 million.

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