P-TV and QRS-TV Are Trying to Decide Whether to Air

question 39

Multiple Choice

P-TV and QRS-TV are trying to decide whether to air a sit-com or a reality show in a given time slot. Viewers like both sit-coms and reality shows, but sit-coms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. Given the information in this decision tree, if QRS-TV announces that it will air a sit-com, it can expect to:

• A)lose $5 million.
• B)earn $5 million.
• C)earn $10 million.
• D)earn $20 million.

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Definitions:

Emotional Involvement

Refers to the degree to which an individual is emotionally engaged or connected with a subject, task, or another person.

Managers

Individuals in an organization responsible for controlling or administering all or part of a company or similar organization.

Multidirectional Influencers

Individuals or factors that can affect or be affected by multiple directions in communication or organizational dynamics.

Emerge

To come into existence or become apparent, often gradually or out of a previous state or condition.