A television network earns an average of $14 million each season from a hit program and loses an average of $8 million each season on a program that turns out to be a flop. Of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. At a cost of C dollars, a market research firm will analyze a pilot episode of a prospective program and issue a report predicting whether the given program will end up being a hit. If the program is actually going to be a hit, there is a 75% chance that the market researchers will predict the program to be a hit. If the program is actually going to be a flop, there is only a 30% chance that the market researchers will predict the program to be a hit. What is the maximum value of C that the network should be willing to pay the market research firm? Enter your answer in dollars, not in million dollars. $ __________ Calculate EVPI for this decision problem. Enter your answer in dollars, not in million dollars. $ __________

A television network earns an average of $14 million each season from a hit program and loses an average of $8 million each season on a program that turns out to be a flop. Of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. At a cost of C dollars, a market research firm will analyze a pilot episode of a prospective program and issue a report predicting whether the given program will end up being a hit. If the program is actually going to be a hit, there is a 75% chance that the market researchers will predict the program to be a hit. If the program is actually going to be a flop, there is only a 30% chance that the market researchers will predict the program to be a hit. What is the maximum value of C that the network should be willing to pay the market research firm? Enter your answer in dollars, not in million dollars. $ Calculate EVPI for this decision problem. Enter your answer in dollars, not in million dollars. $

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.2: Representing Data

Problem 22PFA

See similar textbooks

Similar questions

Opinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, and the number of PFCs purchased per week. PFC Spending 2 13.88 7 39.11 4 19.79 1 9.84 3 15.43 1 21.52 5 37.39 3 13.85 Calculate the slope and y-intercept for the regression formula. The slope is b1=4.465 The y-intercept is b0=6.840 Provide an interpretation for the value of the slope. Because the slope is positive, it can be…
Opinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, and the number of PFCs purchased per week. PFC Spending 2 13.88 7 39.11 4 19.79 1 9.84 3 15.43 1 21.52 5 37.39 3 13.85 The slope is b1=4.465 The y-intercept is b0=6.840 Because the slope is positive, it can be concluded that one extra PFC purchase per week will increase the average amount of spending per week by 4.46 dollars. Predict…
Opinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, y, and the number of PFCs purchased, x, per week. PFC Spending 1 13.17 8 38.65 3 19.49 2 9.56 4 15.85 1 21.82 5 37.53 3 13.69 α=0.05 t= 3.07 p-value= 0.22 Construct a 95% confidence interval for the population slope. UCL = LCL = (Round to two decimal places as needed.)
Opinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, y, and the number of PFCs purchased, x, per week. PFC Spending 1 13.17 8 38.65 3 19.49 2 9.56 4 15.85 1 21.82 5 37.53 3 13.69 α=0.05 t= 3.07 p-value= 0.022 Construct a 95% confidence interval for the population slope. UCL = 6.69 LCL = 0.75 What conclusions about PFC purchases and spending can be drawn from these…
Morning House is a mail-order firm which carries a wide range of rather expensive art objects for homes and offices. It operate problems would be greatly reduced. Since it takes approximately six weeks to receive 90% of the response to a given campaign, an accurate prediction of total sales made as late as the end of the first week of receiving orders would be useful. The first week’s sales and total sales of the last 12 campaigns of the firm are shown below. Can the first week’s sales be used to predict total sales? First week’s Total Campaign Sales Sales 1 32 167 2 20 91 3 114 560 4 66 335 5 18 70 6 125 650 7 83 401 8 65 320 9 94 470 10 5 15 11 39 210 12 50 265 --------------------------------------------
A television network earns an average of $65 million each season from a hit program and loses an average of $25 million each season on a program that turnsout to be a flop. Of all programs picked up by this network in recent years, 30% turn out to be hits; the rest turn out to be flops. At a cost of C dollars, a market research firm will analyze a pilot episode of a prospective program and issue a report predicting whether the given program will end up being a hit. If the program is actually going to be a hit, there is a 65% chance that the market researchers will predict the program to be hit. If the program is actually going to be a flop, there is only a 40% chance that the market researchers will predict the program to be a hit. a. What is the maximum value of C that the network should be willing to pay the market research firm? b. Calculate and interpret EVPI for this decision problem.
A company organizes its sales into territories, each assigned to one sales representative. An analyst theorizes that the on-the-job experience level of the sales rep may be related to the amount of sales in each territory. The analyst decided to use the time the sales reps had been employed at the company to predict sales. After taking a random sample of sales territories, the analyst measured the last quarter's Sales in dollars and the Experience the sales rep had at the company in months. Here are the three tables from the regression results: Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total Intercept Experience (months) 0.5966 0.3559 0.339 497.9058 40 df 1 38 39 Coefficients 6.6108 SS 5205388.04 5205388.04 9420585.51 Standard Error 4250.9742 180.2332 14625973.55 1.4427 How many territories are in the sample? 247910.15 t Stat MS 23.586 4.5822 P-value 2.71E-24 4.85E-05 F 20.9971 Lower 95% Upper 95% 3886.1113…
ABC Inc., with the province-wide operation for 15 years, is estimated to have about 12.5% the market share. Over the period of the last 12 months, its business activities were trending at high levels. Encouraged with the trend, it launched a marketing campaign to promote its products and services. At the end of the campaign period, the company conducts a survey to assess whether its market share has increased. Based on 650 survey participants the result obtained was 15.8%. What is the associated p-value of the test statistic for testing the company's claim?
The Columbus Zoo conducts a study to determine whether a household's income can be used to predict the amount of money the household will give to the zoo's annual fund drive. What is the response variable in this study?
Each year U.S. News and World Report conducts its "Survey of America's Best Graduate and Professional Schools." and ranks the top 25 business schools, as determined by reputation, student selectivity, placement success, and graduation rate. For each school, three variables were measured: (1) GMAT score for the typical incoming student; (2) student acceptance rate (percentage accepted of all students who applied); and (3) starting salary of the typical graduating student. An academic advisor wants to predict the typical starting salary of a graduate at a top business school using GMAT score of the school as a predictor variable. The results of a simple linear regression of SALARY versus GMAT using the 25 data points are shown below. Is there sufficient evidence to suggest there is a linear relationship between SALARY and GMAT at the 5% level of significance? ----------------------------------------------------------------------------------- a = -92040 b = 228 s = 3213 r2 = .66 r =…
Joseph Randal has just been named the director of alumni relationships at a local university. Alumni donations are an important source of revenue for colleges and universities. If administrators could determine the factors that could lead to increases in the percentage of alumni who make a donation, they might be able to implement policies that could lead to increased revenues. Research shows that students who are more satisfied with their contact with teachers are more likely to graduate. As a result, one might suspect that smaller class sizes and lower student/faculty ration might lead to a higher percentage of satisfied graduates, which in turn might lead to increases in percentage of alumni who make a donation. Joseph is feeling an extra pressure to increase total giving to the university because of recent budget cuts. Joseph is also feeling pressured to increase the percentage of alumni to give. Joseph found this new metric called average alumni giving rate U.S. News &…
A manager of a large corporation recommends a $10,000 raise be given to keep a valuedsubordinate from moving to another company. What internal and external sources of datamight be used to decide whether such a salary increase is appropriate?