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:

Nesting Methods

Placing one method inside another or calling a method from within the body of another method in programming.

Loops

Loops in programming are constructs that repeat a block of code multiple times until a specified condition is met.

Class String

A class in Java that is used to create and manipulate a sequence of characters.

Actual Parameter

The specific value provided to a function or a method when it is called, serving as input to execute the function.