Sentosa Company Is Considering Launching a New Product Which It

question 13

Multiple Choice

Sentosa Company is considering launching a new product which it believes has a 70% probability of success. The company is, however, considering undertaking an advertising campaign costing £60,000, which would increase the probability of success to 95%. If successful the product would generate income of £240,000 otherwise £84,000 would be received.
What is the maximum amount that the company should be prepared to pay for advertising?

• A) £34,800
• B) £21,000
• C) £39,000
• D) £60, 000

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Definitions:

Motivate Audience

The act of inspiring or energizing viewers or listeners to engage, respond, or take action.

Euphemisms

Mild or indirect words or expressions substituted for ones considered harsh or blunt when referring to something unpleasant or embarrassing.

Obscured Truth

Information or facts that are made difficult to understand or perceive clearly, often intentionally.

Credibility

involves the quality of being trusted and believed in, often due to consistency, integrity, or reliability.