Business, 09.10.2019 01:30 jaimon8729

The nbs television network earns an average of $400,000 from a hit show and loses an average of $100,000 on a flop. of all shows reviewed by the network, 25% turn out to be hits and 75% turn out to be flops. for $40,000 a market research firm will have an audience view a pilot of a prospective show and give its view about whether the show will be a hit or a flop. if a show is actually going to be a hit, there is a 90% chance that the market research firm will predict the show to be a hit. if the show is actually going to be a flop, there is a 80% chance that the market research firm will predict the show to be a flop. determine how the network can maximize its expected profits. show all your work, including a completed decision tree. state the optimal policy and its emv. c

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The nbs television network earns an average of $400,000 from a hit show and loses an average of $100...

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