The Head of Operations for a Movie Studio Wants to Determine

question 47

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.She feels that script #1 has a 70% chance of earning $100 million over the long run,but a 30% chance of losing $20 million.If this movie is successful,then a sequel could also be produced,with an 80% chance of earning $50 million,but a 20% chance of losing $10 million.On the other hand,she feels that script #2 has a 60 % chance of earning $120 million,but a 40% chance of losing $30 million.If successful,its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million.As with the first script,if the original movie is a "flop",then no sequel would be produced.
-What would be the total payoff is script #1 were a success,but its sequel were not?

• A)$150 million
• B)$100 million
• C)$90 million
• D)$50 million
• E)$-10 million

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Definitions:

Fixation Time

The duration for which one's gaze remains on a single location or object.

Object Reference

In computing, it's a reference that points to a location in memory where the data for an object is stored.

Imprinting

A rapid learning process that occurs early in an animal's life, where it forms attachments and recognizes patterns.

Assimilating

The cognitive process of fitting new information into existing cognitive schemas, perceptions, and understanding.