The head of operations for a movie studio wants to determine which of two new scripts they should select for their next
Posted: Thu May 12, 2022 2:22 pm
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
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