The television production company ZVTV Productions has developed

1. For each of the following questions shown on the decision tree and indicating one or more decision points, select Yes if the information provided suggests that the decision(s) involved would be made by Teevisio. Otherwise, select No.

decision(s) involved made by Teevisio
Only Teevisio -> If Teevisio accepted the pilot, they would pay HK$2,000,000 to acquire all the IP rights for the script, pilot, and series.

2.For each of the following amounts, select Yes if the information provided suggests that it is the total amount of a possible loss referred to by some "Loss" circle on the decision tree. Otherwise, select No.

Cost of Script -100,000
Vidrama +800,000
Produce the pilot episode -400,000
Teeviso pay (script, pilot, series) +2,000,000
Critico charge -100,000

In decision tree, there is only these type loss

Hire Critico -> Produce Pilot ==> 500,000
Produce Pilot ==> 400,000

Answer is 500,000 only



3. Suppose that Critico is hired, provides a positive evaluation of the script for Whatsit, and predicts that Teevisio will purchase all the IP rights for the series. If ZVTV Productions then produces the pilot episode, which one of the following is the probability, according to Ms. Chen’s estimates and the other information provided, that Critico’s prediction will NOT be correct?

-> Critico assess the likelihood that Teevisio would buy all the IP rights for the script, pilot, and series.
-> NOT be correct => not buy
-> in the decision tree 20 / (80 + 20) = 20%