The Head of Operations for a Movie Studio Wants to Determine

question 1

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 is the expected payoff from selecting script #2?

• A)$150 million
• B)$90 6 million
• C)$84 million
• D)$72 million
• E)$60 million

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Definitions:

SA Node

The sinoatrial node, a group of cells located in the right atrium of the heart that generates electrical impulses initiating each heartbeat.

SA Node

The sinoatrial node, often called the heart's natural pacemaker, initiates electrical impulses that set the rate and rhythm of heartbeats.

Ventricular Contractions

The tightening of the heart's ventricles, which pumps blood out of the heart and into the arteries.

P-QRS Waves

Represents the electrical activity that triggers the heartbeat, as recorded by an electrocardiogram.