Question: During the Super Bowl a 30 second commercial costs 2 5 million

During the Super Bowl, a 30-second commercial costs $2.5 million. The maker of Doritos corn chips was considering purchasing such an ad. The marketing director felt that there was a 0.35 probability that the commercial would boost sales volume to $20 million over the next month; there was a 0.60 probability that excess sales would be $10 million; and a 0.05 probability that excess sales would be only $1 million. Carry out an analysis of whether to purchase a 30-second commercial during the Super Bowl using a complete decision tree.

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  • CreatedJune 04, 2015
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