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:

Situational Factors

External influences or conditions that affect decision-making, behavior, or performance in varying scenarios.

External-unstable Factor

refers to outside influences that can affect behavior or outcomes but are inconsistent and unpredictable, such as luck or chance.

Pessimistic Explanatory

A cognitive style where individuals habitually attribute negative events to stable, global, and internal causes.

Internal

Pertaining to or occurring within an individual’s mind or self.