Question: Halifax Metaverse Network must decide on which one of two new digital games to create: SOLBY or WILDY. The costs of producing and operating the

Halifax Metaverse Network must decide on which
Halifax Metaverse Network must decide on which
Halifax Metaverse Network must decide on which
Halifax Metaverse Network must decide on which one of two new digital games to create: SOLBY or WILDY. The costs of producing and operating the two games are similar and the average monthly subscription for either game could be low (15,000 subscribers), medium ( 56,000 subscribers), or high ( 98,000 subscribers). If the company chooses to create SOLBY, they will charge $33 per account for monthly subscription, and the probabilities of low and medium subscriptions are 0.15 and 0.5 respectively. For WILDY, there is a 44% chance that a competitive game will appear on the market. The probability of high subscription is 0.48 if no competitive game appears and 0.26 if a competitive game appears. The probability of medium subscription is 0.21 whether or not competition appears. The company will charge $39/ month per account for subscription to WILDY if no competitive game appears but will only charge $29/ month if competition appears. Construct a decision tree for the problem, where payoffs are total monthly subscription in dollars. For example, if solBy is created and subscription is low, then Construct a decision tree for the problem, where payoffs are total nonthly subscription in dollars. For example, if SOLBY is created and subscription is low, then subscription dollars will be $3315000=$495,000. Report answers accurate to the nearest dollar. a. What is the expected monetary value for SOLBY? $ b. What is the expected monetary value for WILDY if there is no competition? $ c. What is the expected monetary value for WILDY if competition appears? $ d. What is the expected monetary value for WILDY? $ d. What is the expected monetary value for WILDY? $ e. What is the expected monetary value of the optimal decision? $ f. What is the optimal decision? Question Help: Read

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