A University Is Trying to Decide Whether or Not to Advertise

question 28

Multiple Choice

A university is trying to decide whether or not to advertise a new post-graduate degree programme. The number of students starting the programme is dependent on economic conditions. If conditions are poor, it is expected that the programme will attract 40 students without advertising. There is a 60% chance that economic conditions will be poor. If economic conditions are good it is expected that the programme will attract only 20 students without advertising. There is a 40% chance that economic conditions will be good. If the programme is advertised and economic conditions are poor, there is a 65% chance that the advertising will stimulate further demand and student numbers will increase to 50. If economic conditions are good, there is a 25% chance the advertising will stimulate further demand and numbers will increase to 25 students. The profit expected, before deducting the cost of advertising, at different levels of student numbers are as follows: 11ec37eb_8ba9_19e2_97b9_417bb6c0eea9__00 The cost of advertising the programme will be $15,000. Required: Demonstrate, using a decision tree, whether the programme should be advertised.

• A) Yes, the programme should be advertised as the profit will be $82 000
• B) Yes, the programme should be advertised as the profit will be $92 000
• C) No, the programme should not be advertised as there will be a loss $82 000
• D) No, the programme should not be advertised as there will be a loss $92 000

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Definitions:

Saddle

A seat for a rider, typically made of leather, fastened to an animal's back by a girth.

Plane

Flat surface; an imaginary surface formed by extension through any axis or two points—for example, a midsagittal plane, a coronal plane, and a transverse plane.

Hinge

A type of joint that allows for motion in one plane, much like the opening and closing of a door, commonly found in the elbows and knees.

Synovial Joints

A type of joint that is surrounded by a flexible sac filled with lubricating synovial fluid, allowing for smooth movement between the bones.