Texaco-Penzoil Case

Texaco-Penzoil Case - Accept $2 Billion Penzoill-Texaco...

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#ADDIN? #ADDIN? 2 #ADDIN? Decision #ADDIN? 17.0% #ADDIN? 5 #ADDIN? #ADDIN? Chance 0 #ADDIN? 20.0% #ADDIN? 10.3 #ADDIN? 50.0% Chance 0 #ADDIN? 50.0% #ADDIN? 5 #ADDIN? 30.0% #ADDIN? 0 #ADDIN? 20.0% #ADDIN? 10.3 #ADDIN? #ADDIN? Chance 0 #ADDIN? 50.0% #ADDIN? 5 #ADDIN? 30.0% #ADDIN? 0 #ADDIN? 33.3% Decision 0 #ADDIN? #ADDIN? #ADDIN? 3 #ADDIN? Penzoill-Texaco Accept $2 Billion Counteroffer $5 Billion Texaco Accept $5 Biilion Texaco Refuses Counteroffer Low Award Low Award Medium Award High Award Medium Award High Award branch Texaco Counteroffers $3 Billion branch (2)
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Outcome x ($Billion) Pr(Outcome|D) 2 1 Risk Profile 2 0 2 1 Cumulative Risk Profile -1 0 0 0 2 0 2 1 12 1 Outcome x ($Billion) 2 1 Pr(Outcome x|D) -1 2 5 8 11 0 0.2 0.4 0.6 0.8 1 Risk Profile D="Accept $2 Billion" Outcome ($Billion) Pr(Outcome|D) -1 1 3 5 7 9 11 0 0.2 0.4 0.6 0.8 1 Cumulative Risk Profile D="Accept $2 Billion" Outcome ($Billion) Pr(Outcome £ x|D)
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Outcome x ($Billion) Pr(Outcome|D) 0 0.249 5 0.585 10.3 0.166 Risk Profile 0 0 0 0.249 5 0 5 0.585
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This note was uploaded on 12/04/2011 for the course BUSINESS 500 taught by Professor John during the Spring '11 term at Kansas.

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Texaco-Penzoil Case - Accept $2 Billion Penzoill-Texaco...

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