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, Disney's 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. Now suppose they can invest in more research that will tell them definitively whether the movie will succeed or not. What is the value of such research to Disney? Priceless $0 (nothing) $1.6 Billion $0.35 Billion $3 Billion 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, Disney's 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. Now suppose they can invest in more research that will tell them definitively whether the movie will succeed or not. What is the value of such research to Disney? Priceless $0 (nothing) $1.6 Billion $0.35 Billion $3 Billion