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1 2 A business is deciding whether or not to increase its annual expenditure on TV advertising. Referring to Figure 1 below, use calculations to
1 2 A business is deciding whether or not to increase its annual expenditure on TV advertising. Referring to Figure 1 below, use calculations to advise the business on whether or not it should increase its annual TV advertising expenditure. Figure 1 Decision Tree Pay-off (Em) Success +15 0.8 Increase annual TV advertising expenditure (E5 million) O Failure -4.5 0.2 Do nothing Zero EV = 0 [5 marks]
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