Visual Park Is Considering Marketing One of Its Two Television

question 57

Essay

Visual Park is considering marketing one of its two television models for coming Christmas season: Model A or Model B. Model A is a unique featured television and appears to have no competition. Estimated profits (in thousand dollars) under high, medium, and low demand are given below:

Visual Park is optimistic about the TV Model B. However, the concern is that profitability will be affected if a competitor launches a TV model which has similar features as Model B. Estimated profits (in thousand dollars) with and without competition is as follows:

a. Develop a decision tree for the Visual Park problem.
b. For planning purposes, Visual Park believes there is a 0.7 probability that its competitor will launch a TV model similar to Model B. Given this probability of competition, the director of planning recommends marketing the Model A. Using expected value, what is your recommended decision?
c. Show a risk profile for your recommended decision.
d. Use sensitivity analysis to determine the probability of competition for Model B would have to be for you to change your recommended decision alternative.

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Definitions:

Training Video

A visual instructional tool designed to teach viewers specific skills or knowledge, often used in educational and professional development contexts.

Equal Employment Opportunity Commission

A federal agency in the United States responsible for enforcing federal laws making it illegal to discriminate against a job applicant or an employee because of race, color, religion, sex, national origin, age, disability, or genetic information.

Unfair Labor Practice

Actions by employers or unions that violate the rights of employees or the provisions of labor laws.

Taft-Hartley Act

A 1947 U.S. law that restricts the activities and power of labor unions, including prohibiting certain types of strikes and requiring union leaders to swear they were not communists.