Suppose that Disney is developing another Star Wars movie, this time about the background of the bounty hunter Boba Fett. Suppose that the information they have indicates:

• that their quarterly profits will be $12 Billion if the new movie fails
• but $15 Billion if it succeeds.
• If they decide not to launch the movie, Disneys quarterly profits will be $12.5 Billion.
• The probability of success is assessed to be 0.3.

Answer these two questions while keeping it simple: in your assessment, do not factor in a) intermediate outcomes like partial failure and b) any profits beyond this quarter.

According to the information they have, if they launch the movie their expected profits will be $___ and so they should _______ .

a. $15 Billion, launch the movie

b. $14.1 Billion, launch the movie

c. $12 Billion, do not launch the movie

d. $12.9 Billion, launch the movie

e. $14.1 Billion, do not launch the movie