An entertainment company is organizing a pop concert in

An entertainment company is organizing a pop concert in London.Thecompany

has to decide how much it should spend on publicizing the event, and three

options have been identified:

Option 1: Advertise only in the music press;

Option 2: As option 1, but also advertise in the national press;

Option 3: As options 1 and 2, but also advertise on commercial radio.

For simplicity, the demand for tickets is categorized as low, medium or high.

The payoff table below shows how the profit that the company will earn for

each option depends on the level of demand:


Option  Low  Medium  High  Profits ($000s)

1 −20  −20 100

2 −60  −20 60

3 −100  −60 20

It is estimated that if option 1 is adopted the probabilities of low, medium

and high demand are 0.4, 0.5 and 0.1 respectively. For option 2 the respective

probabilities are 0.1, 0.3 and 0.6, while for option 3 they are 0.05, 0.15 and 0.8.

Determine the option that will lead to the highest expected profit. Would you

have any reservations about recommending this option to the company?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Enjoy 10% OFF today with the coupon code: save10