Construct a payoff table and help steven moffat

Assignment Help Operation Management

Reference no: EM133344843

Case: Steven Moffat is a TV writer and producer with a string of recent hits, and he has been working on a new script titled "Inspector Space Time." He is considering producing a pilot for the series and showing it to executives from the Syfy Channel. The executives may decide to reject the series, buy rights to show it for one year, or buy rights to show it for two years. Given his recent success, Moffat estimates that the most likely outcome is a two-year contract (probability = 0.5). The probability of him receiving a one-year contract is 0.3 and the probability of a rejection is 0.2. If Moffat decides to produce the pilot himself, it would cost him $100,000 to do so. If the network rejects the pilot, he would lose all of this initial investment. The network would pay him $150,000 for a one-year contract and $250,000 for a two-year contract. Instead of producing the pilot himself, he can just write the script and sell it to another production company. He has received an offer of $100,000 from his competitor, R.T. Davies productions. If Moffat sells, Davies would own the script and all production rights, regardless of the network

a. Construct a payoff table and help Steven Moffat make a decision based on expected values.

b. Moffat has a friend, Mark Gatiss, who works at Syfy and can tell him what the executives will decide by just looking at the script. He doesn't feel comfortable with asking his friend for a favor, so he would like to pay for this additional information. How much would Moffat be willing to pay Gatiss for his help?

Reference no: EM133344843

Questions Cloud

What challenges confront latinos in the united states today : What challenges confront Latinos in the United States today? How are these challenges similar to or different from those that confront all immigrants?

What service level is the supervisor implicitly using : Deviation of monthly demand for vodka is 98 cases, what service level is the supervisor implicitly using? Round your answer to 4 decimal places

What is the tool that airlines use to provide automatic real : what is the tool that airlines use to provide automatic real-time services like flight status, flight-re-book, and baggage assistance, so that ground agents

What is the capital gain from holding von bora steel : What is the total return that you will receive on your investment? i. Suppose you plan to hold Yon ?ora stock for only one year. Calculate your total return

Construct a payoff table and help steven moffat : Construct a payoff table and help Steven Moffat make a decision based on expected values - asking his friend for a favor, so he would like to pay

What character thinks about the long-term future of colonies : What your character read in a newspaper editorial about the event. What your character thinks about the long-term future of the colonies.

Identify the quality problems that are causing the most : identify the quality problems that are causing the most incidents. identify the best opportunities to add new features and functions.

Discuss how will uavs potentially change : Discuss how will UAVs potentially change the aviation industry? Where will things be in 20 years and what will the aviation world look like

Calculating the number of pumps needed to supply : Calculating the number of pumps needed to supply the water in 1 hours. Please write equations, substitute into equations and perform the calculations

User Account

All Pages