The Head of Operations for a Movie Studio Wants to Determine

question 189

Multiple Choice

The head of operations for a movie studio wants to determine which of two new scripts they should select for their next major production. (Due to budgeting constraints, only one new picture can be undertaken at this time.) She feels that script 1 has a 70 percent chance of earning about $10,000,000 over the long run, but a 30 percent chance of losing $2,000,000. If this movie is successful, then a sequel could also be produced, with an 80 percent chance of earning $5,000,000, but a 20 percent chance of losing $1,000,000. On the other hand, she feels that script 2 has a 60 percent chance of earning $12,000,000, but a 40 percent chance of losing $3,000,000. If successful, its sequel would have a 50 percent chance of earning $8,000,000, but a 50 percent chance of losing $4,000,000. Of course, in either case, if the original movie were a flop, then no sequel would be produced.
What is the probability that script 1 will be a success, but its sequel will not?

• A)0.8
• B)0.7
• C)0.56
• D)0.2
• E)0.14

---

Definitions:

Emotionally Intelligent Leadership

A leadership approach that emphasizes the ability to understand and manage one's own emotions and the emotions of others to inspire and guide employees effectively.

Model

A representation, often simplified, that is used to explain, describe, or predict the behavior of a system or process.

Big Five Personality Factors

A model describing five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Leadership

The process of motivating and directing individuals to achieve group objectives.