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13 Apr 2024, 17:25
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The television production company ZVTV Productions has developed a script for a pilot episode of a new television series called Whatsit. The following gives information about all the costs and revenues that would arise, depending on the decisions made.
The cost of the script development, in Hong Kong dollars, was HK$ 100,000. The rival production company Vidrama has offered to buy the script and all the intellectual-property (IP) rights for the series from ZVTV Productions for HK$800,000, its final offer.
ZVTV Productions could reject Vidrama's offer, spend HK$400,000 to produce the pilot episode, and try to sell the IP rights for the series to the television network 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. However, if Teevisio rejected the pilot, neither Vidrama nor any other company would buy any of the IP rights mentioned.
Before deciding whether to accept Vidrama's offer, ZVTV Productions could pay the consulting firm Critico to evaluate Whatsit and assess the likelihood that Teevisio would buy all the IP rights for the script, pilot, and series. Critico would charge HK$100,000.
The cost of the script development, in Hong Kong dollars, was HK$ 100,000. The rival production company Vidrama has offered to buy the script and all the intellectual-property (IP) rights for the series from ZVTV Productions for HK$800,000, its final offer.
ZVTV Productions could reject Vidrama's offer, spend HK$400,000 to produce the pilot episode, and try to sell the IP rights for the series to the television network 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. However, if Teevisio rejected the pilot, neither Vidrama nor any other company would buy any of the IP rights mentioned.
Before deciding whether to accept Vidrama's offer, ZVTV Productions could pay the consulting firm Critico to evaluate Whatsit and assess the likelihood that Teevisio would buy all the IP rights for the script, pilot, and series. Critico would charge HK$100,000.
All IP rights Purchased?: Yes
Positive evaluation of script?: No
Sell script to Vidrama?: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
57% (03:25) correct
43%
(03:02)
wrong
based on 1230
sessions
History
Date
Time
Result
Not Attempted Yet
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.
| Yes | No | |
| All IP rights Purchased? | ||
| Positive evaluation of script? | ||
| Sell script to Vidrama? |
ShowHide Answer
Official Answer
All IP rights Purchased?: Yes
Positive evaluation of script?: No
Sell script to Vidrama?: No
HK$100,000: No
HK$500,000: Yes
HK$800,000: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
57% (02:03) correct
43%
(01:56)
wrong
based on 1172
sessions
History
Date
Time
Result
Not Attempted Yet
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.
| Yes | No | |
| HK$100,000 | ||
| HK$500,000 | ||
| HK$800,000 |
ShowHide Answer
Official Answer
HK$100,000: No
HK$500,000: Yes
HK$800,000: No
20%
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
57% (01:33) correct
43%
(01:43)
wrong
based on 1082
sessions
History
Date
Time
Result
Not Attempted Yet
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?
| 12% | |
| 20% | |
| 25% | |
| 33% | |
| 40% |
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Screenshot 2024-04-13 at 5.21.51 PM.png [ 367.12 KiB | Viewed 12960 times ]
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21 Apr 2024, 01:36
Kudos
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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%
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%
General Discussion
14 Apr 2024, 02:34
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iishim
gmathero911, can you please provide a screenshot of the third question associated with this problem? Thank you!
