3.) Olive Branch is a writer of romance novels. A movie company and a TV network both want exclusive rights to one of her most popular works. If she signs with the network she will receive a single lump sum, but if she signs with the movie company, the amount she will receive depends on the market response (box office) to the movie. Olive's payoffs are summarized: Box Office Small Medium Large Movie Company $200,000 1,000,000 3,000,000 TV network 900,000 900,000 900,000 Probability 0.3 0.6 0.1 a. (5 pts.) Without any additional information, what is Olive's best decision?

Answer rating: 100% (QA)

SOLUTION To determine Olives best decision we need to c... View the full answer