Question
Netflix is considering whether they should produce another Turkish series. The past data shows that 25% of the Turkish series produced turn out to
Netflix is considering whether they should produce another Turkish series. The past data shows that 25% of the Turkish series produced turn out to be (H)its and 75% turn out to be (F)lops. Usually, Netflix earns an average of $400,000 from a hit show or losses an average of $150,000 on a flop. Use a decision tree to calculate the EMV and EVPI of this investment. What will be your decision(s)?
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