P-TV and QRS-TV are trying to decide whether to air a sit-com or a reality show in a given time slot. Viewers like both sit-coms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below.

P-TV will air a sit-com:

Select one:

a. only if QRS-TV is also airing a sit-com.

b. only if QRS-TV is airing a reality show.

c. no matter what QRS-TV does.

d. never.

Transcribed Image Text:

QRS-TV chooses Sit-com Reality P-TV chooses P-TV chooses Sit-com Reality Sit-com Reality -$5 million for QRS-TV -$5 million for P-TV +$5 million for QRS-TV +$20 million for P-TV +$20 million for QRS-TV +$5 million for P-TV +$10 million for QRS-TV +$10 million for P-TV QRS-TV chooses Sit-com Reality P-TV chooses P-TV chooses Sit-com Reality Sit-com Reality -$5 million for QRS-TV -$5 million for P-TV +$5 million for QRS-TV +$20 million for P-TV +$20 million for QRS-TV +$5 million for P-TV +$10 million for QRS-TV +$10 million for P-TV

Answer rating: 100% (QA)

The answer is option d PTV will never ... View the full answer