The head of operations for a movie studio wants to determine which of two new scripts they should select for their next major production.She feels that script #1 has a 70% chance of earning $100 million over the long run,but a 30% chance of losing $20 million.If this movie is successful,then a sequel could also be produced,with an 80% chance of earning $50 million,but a 20% chance of losing $10 million.On the other hand,she feels that script #2 has a 60 % chance of earning $120 million,but a 40% chance of losing $30 million.If successful,its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million.As with the first script,if the original movie is a "flop",then no sequel would be produced.
-What is the probability that script #1 will be a success,but its sequel will not?
A)0 8
B)0 7
C)0 56
D)0 2
E)0 14

Question

The head of operations for a movie studio wants to determine which of two new scripts they should select for their next major production.She feels that script #1 has a 70% chance of earning $100 million over the long run,but a 30% chance of losing $20 million.If this movie is successful,then a sequel could also be produced,with an 80% chance of earning $50 million,but a 20% chance of losing $10 million.On the other hand,she feels that script #2 has a 60 % chance of earning $120 million,but a 40% chance of losing $30 million.If successful,its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million.As with the first script,if the original movie is a "flop",then no sequel would be produced.
-What is the probability that script #1 will be a success,but its sequel will not?
A)0 8 
B)0 7 
C)0 56 
D)0 2 
E)0 14

Quizplus · Accepted Answer

The probability that script #1 will be a success is 70%. Given that it is a success, the probability that its sequel will not be a success is 20%. Therefore, the combined probability is 0.7 * 0.2 = 0.14.

The Head of Operations for a Movie Studio Wants to Determine