Vertigo air is considering adding a new flight from lax

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Reference no: EM13700294

Vertigo Air is considering adding a new flight from LAX to Bratislava for the next year. Vertigo Air has the option of either operating this flight in the same time slot as its competing airline Giddy Air, or to choose a different time. Further, it believes the response to the flight will be favorable, neutral, or unfavorable with probabilities 0.3, 0.4, and 0.3 respectively. However, Vertigo Air may invest heavily in advertising and increase the probability of a favorable response to 0.5 while lowering the probabilities of neutral and unfavorable responses to 0.3 and 0.2, respectively. Advertising costs $10 Million. The table below details the revenues generated by operating the flight:

Reference no: EM13700294

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