Island Publishing Company publishes two types of magazines on a monthly basis: a restaurant and entertainment guide and a real estate guide. The company distributes the magazines free to businesses, hotels, and stores on Hilton Head Island in South Carolina. The company's profits come exclusively from the paid advertising in the magazines. Each of the restaurant and entertainment guides distributed generates .50 per magazine in advertising revenue, whereas the real estate guide generates .75 per magazine. The real estate magazine is a more sophisticated publication that includes color photos, and accordingly it costs .25 per magazine to print, compared with only .17 for the restaurant and entertainment guide. The publishing company has a printing budget of ,000 per month. There is enough rack space to distribute at most 18,000 magazines each month. In order to entice businesses to place advertisements, Island Publishing promises to distribute at least 8,000 copies of each magazine. The company wants to determine the number of copies of each magazine it should print each month in order to maximize advertising revenue.

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u.s. government's e find the expected value of perfect information about the u.s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.