Please state what exactly the answer is in the format given and how you get it,
ID: 3853267 • Letter: P
Question
Please state what exactly the answer is in the format given and how you get it, thanks. Also, pls consider the answer on the question if it helps, the cross means wrong, tick means correct. i also tried 406.69 for f, but it is wrong too. please help.
Problem 13-19 (Algorithmic) Hale's TV Productions is considering producing a pilot for a comedy series in the hope of selling it to a major television network. The network may decide to reject the series, but it may also decide to purchase the rights to the series for either one or two years. At this point in time, Hale may either produce the pilot and wait for the network's decision or transfer the rights for the pilot and series to a competitor for $250,000. Hale's decision alternatives and profits (in thousands of dollars) are as follows State of Nature Reject, S -150 250 Decision Alternative 1Year, S2 2 Years, S3 Produce pilot, di 50 450 250 250 The probabilities for the states of nature are P(S1)0.20, P(S2)0.30, and P(S3)0.50. For a consulting fee of $5,000, an agency will review the plans for the comedy series and indicate the overall chances of a favorable network reaction to the series. Assume that the agency review will result in a favorable (F) or an unfavorable (U) review and that the following probabilities are relevant P(F-0.61 (SIF) = 0.07 P(S2IF 0.23 P(S31F) = 0.70 PlS1lU) 0.44 PlS2IU) = 0.38 PS3W) = 0.18 PCU) 0.39Explanation / Answer
B). The recommended decision if the agency opinion is not used is " Sell"
the estimated value is $640.75 (thousand)
C). The expected value for perfect information - assuming favourable review = $518.03
E). The expected value of agency's information, summing up the favourable and unfavourable review = 1,158.78
F). Hale should pay him not more than $5000