Hale's Productions is considering producing a pilot for a comedy series in the hope of selling it to a major streaming service. The streaming service may decide to reject the series, but itmay also decide to purchase the rights to the series for either one or two years. At this point in time, Hale may either produce the pilot and wait for the streaming service's decision ortransfer the rights for the pilot and series to a competitor for $100,000. Hale's decision alternatives and profits (in thousands of dollars) are as follows:Decision AlternativeProduce pilot, d₁Sell to competitor, d₂P(F) = 0.69P(U) == 0.31P(S₁IF): = 0.08P(S₂|F) = 0.28P(S3|F) = 0.64Decision TreeAgencyNo AgencyReject, S₁2The probabilities for the states of nature are P(S₁) = 0.1947, P(S₂) = 0.3141, and P(S3) = 0.4912. For a consulting fee of $5,000, an agency will review the plans for the comedy seriesand indicate the overall chances of a favorable streaming service reaction to the series. Assume that the agency review will result in a favorable (F) or an unfavorable (U) review and thatthe following probabilities are relevant.F- 100U.100P(S₁U) = 0.45P(S₂|U) = 0.39P(S3|U) = 0.16(a) Construct a decision tree for this problem. (Enter your answers in thousands of dollars.)Description3State of Nature451 Year, S₂(g) What is the recommended decision?50100d₁(f) Is the agency's information worth the $5,000 fee?YesNod2d1Agency; if favorable, produce the pilotAgency; if unfavorable, sell to competitorNo agency; sell to competitorNo agency; produce the pilotd₂What is the expected value (in thousands of dollars)?thousand dollarsd₁d₂6892 Years, S31011S₁52S₂S₁52$3S1523S1S253SSS₁5₂S3S₁(b) What is the recommended decision if the agency opinion is not used?produce pilot, d₁sell to competitor, d₂150S₂10053(c) What is the expected value of perfect information (in thousands of dollars)?thousand dollars(d) What is Hale's optimal decision strategy assuming the agency's information is used?If favorable, ---Select--- ✓ If unfavorable, ---Select--- ✓(e) What is the expected value (in thousands of dollars) of the agency's information? (Round your answer to two decimal places.)thousand dollars1000⁰ 10What is the maximum that Hale should be willing to pay (in thousands of dollars) for the information? (Round your answer to two decimal places.)thousand dollars

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Answered: Hale's Productions is considering…

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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McJester's Burger Hut plans to expand by opening several new restaurants. The chain operates two types of restaurants: drive-through and full-service. A drive-through restaurant costs $111,000 to construct, requires 7 employees, and has an expected annual revenue of $205,000. A full-service restaurant costs $184,000 to construct, requires 17 employees, and has an expected annual revenue of $565,000. McJester's has $3,250,000 in capital available for expansion. Labor contracts require that they higher no more than 325 employees. Licensing restrictions require that they open no more than 25 new restaurants. Let x be the number of drive-through restaurants and let y be the number of full-service restaurants in this expansion. Let R be the expected annual revenue in dollars resulting from the expansion. McJester's wants to maximize the expected revenue. Set up the linear programming problem. Answer the following questions about this linear programming problem. The question is attached…
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McJester's Burger Hut plans to expand by opening several new restaurants. The chain operates two types of restaurants: drive-through and full-service. A drive-through restaurant costs $111,000 to construct, requires 7 employees, and has an expected annual revenue of $205,000. A full-service restaurant costs $184,000 to construct, requires 17 employees, and has an expected annual revenue of $565,000. McJester's has $3,250,000 in capital available for expansion. Labor contracts require that they higher no more than 325 employees. Licensing restrictions require that they open no more than 25 new restaurants. Let x be the number of drive-through restaurants and let y be the number of full-service restaurants in this expansion. Let R be the expected annual revenue in dollars resulting from the expansion. McJester's wants to maximize the expected revenue. Set up the linear programming problem. Answer the following questions about this linear programming problem. The question is attached…
Hale's TV Productions is considering producing a pilot for a comedy series in the hope of selling it to a major television network. The network may decide to reject the series, but it may also decide to purchase the rights to the series for either one or two years. At this point in time, Hale may either produce the pilot and wait for the network's decision or transfer the rights for the pilot and series to a competitor for $100,000. Hale's decision alternatives and profits (in thousands of dollars) are as follows: State of Nature Decision Alternative Reject, S1 1 Year, S2 2 Years, S3 Produce pilot, d1 -100 50 150 Sell to competitor, d2 100 100 100 The probabilities for the states of nature are P(S1) = 0.20, P(S2) = 0.30, and P(S3) = 0.50. For a consulting fee of $5,000, an agency will review the plans for the comedy series and indicate the overall chances of a favorable network reaction to the series. Assume that the agency review will result in a favorable (F) or an…

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