The head of operations for a movie studio wants to determine which of two new scripts they should select for their next

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

The head of operations for a movie studio wants to determine which of two new scripts they should select for their next

Post by answerhappygod »

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?
Multiple Choice
0.8
0.7
0.56
0.2
0.14
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply