Chapter6Q03answer - Chapter 6 Question 3 a) 0.7 High circ...

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Chapter 6 a) 0.7 Profit ($m) High circ 3.3 Increase advertising 3.3 2.4 0.3 Low circ 0.2 0.3 Don't beat rival 0.3 1 2.4 0.5 High circ 3.5 Don’t increase ads. 3.5 Bring launch forward 2 0.5 Low circ 2.68 0.5 0.5 0.75 High circ 0.8 3.5 Beat rival 3.5 2.75 0.25 Low circ 0.5 0.5 0.7 High circ 3.8 Increase advertising 3.8 2.9 0.3 Low circ 0.7 0.8 Don't beat rival 0.8 21 3.005 2.9 0.5 High circ 4 Don’t increase ads. 4 Don’t bring launch forward 2.5 0.5 Low circ 3.005 1 1 0.75 High circ 0.3 4 Beat rival 4 3.25 0.25 Low circ 1 1 Don't launch 0 0
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b) The decision tree indicates that Westward should not bring the launch forward. If the rival launches first they should increase their level of advertising.
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This note was uploaded on 03/29/2010 for the course DMVS 324 taught by Professor Muller during the Spring '10 term at Stellenbosch University-South Africa.

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Chapter6Q03answer - Chapter 6 Question 3 a) 0.7 High circ...

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