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Example 21.8) A marketing manager has to decide be- tween advertising his product on a national level and not advertising it. If he advertises the product and it is suc- cessful, his company will gain Rs 4 lakh, but if he adver- tises and the product fails, the company will lose Rs 4 lakh. No loss or gain is attached to his not taking action. He thinks that there is 0.6 probability that the advertising campaign will be successful. (a) Construct a decision tree to help analyse this problem (b) What action the marketing manager should take?

Example 21.8) A marketing manager has to decide be- tween advertising his product on a national level and not advertising it. If he advertises the product and it is suc- cessful, his company will gain Rs 4 lakh, but if he adver- tises and the product fails, the company will lose Rs 4 lakh. No loss or gain is attached to his not taking action. He thinks that there is 0.6 probability that the advertising campaign will be successful. (a) Construct a decision tree to help analyse this problem (b) What action the marketing manager should take?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Example 21.8) A marketing manager has to decide be- tween advertising his product on a national level and not advertising it. If he advertises the product and it is suc- cessful, his company will gain Rs 4 lakh, but if he adver- tises and the product fails, the company will lose Rs 4 lakh. No loss or gain is attached to his not taking action. He thinks that there is 0.6 probability that the advertising campaign will be successful. (a) Construct a decision tree to help analyse this problem (b) What action the marketing manager should take?
Transcribed Image Text:Example 21.8) A marketing manager has to decide be- tween advertising his product on a national level and not advertising it. If he advertises the product and it is suc- cessful, his company will gain Rs 4 lakh, but if he adver- tises and the product fails, the company will lose Rs 4 lakh. No loss or gain is attached to his not taking action. He thinks that there is 0.6 probability that the advertising campaign will be successful. (a) Construct a decision tree to help analyse this problem (b) What action the marketing manager should take?
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