Homework-Chapter13

# Homework-Chapter13 - Chapter 13 Homework 10 Video Tech is...

• Notes
• PrivateBraveryPrairieDog9600
• 2
• 30% (10) 3 out of 10 people found this document helpful

This preview shows pages 1–2. Sign up to view the full content.

Chapter 13: Homework 10. Video Tech is considering marketing one of two new video games for the coming holiday season: Battle Pacific or Space Pirates. Battle Pacific is a unique game and appears to have no competition. Estimated profits (in thousands of dollars) under high, medium, and low demand are as follows: Demand Battle Pacific High Medium Low Profit \$1000 \$700 \$300 Probability 0.2 0.5 0.3 Video Tech is optimistic about its Space Pirates game. However, the concern is that profitability will be affected by a competitor’s introduction of a video game viewed as similar to Space Pirates. Estimated profits (in thousands of dollars) with and without competition are as follows. Demand Space Pirates with Competition High Medium Low Profit \$800 \$400 \$200 Probability 0.3 0.4 0.3 Demand Space Pirates without Competition High Medium Low Profit \$1600 \$800 \$400 Probability 0.5 0.3 0.2 a) Develop an influence diagram and a decision tree for the Video Tech problem b) For planning purposes, Video Tech believes there is a 0.6 probability that its competitor will produce a new game similar to Space Pirates. Given this

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern