Example 21.8) A marketing manager has to decide be- tween advertising his product on a national level and not advertising it. If he advertises the product and it is suc- cessful, his company will gain Rs 4 lakh, but if he adver- tises and the product fails, the company will lose Rs 4 lakh. No loss or gain is attached to his not taking action. He thinks that there is 0.6 probability that the advertising campaign will be successful. (a) Construct a decision tree to help analyse this problem (b) What action the marketing manager should take?

Example 21.8) A marketing manager has to decide be- tween advertising his product on a national level and not advertising it. If he advertises the product and it is suc- cessful, his company will gain Rs 4 lakh, but if he adver- tises and the product fails, the company will lose Rs 4 lakh. No loss or gain is attached to his not taking action. He thinks that there is 0.6 probability that the advertising campaign will be successful. (a) Construct a decision tree to help analyse this problem (b) What action the marketing manager should take?

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 28EQ

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