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The advertising manager for Kastoff Kings wants to decide which of two advertising campaigns to adopt in marketing the services of his company, which specializes
The advertising manager for Kastoff Kings wants to decide which of two advertising campaigns to adopt in marketing the services of his company, which specializes in the collection of unwanted items from owners of commercial and residential properties. He has assessed three levels of business activity for each campaign: small, moderate, and large. The problem is to decide which advertising campaign to choose, based on estimated profits associated with the two campaigns for each level of potential activity. The payoffs in operating profits and the probabilities for the three levels are as follows: Operating profits for Advertising Campaign (5000) Level of Business Activity Small Moderate Large Probability 2.3 0.6 $ (100) 200 100 $ 20 150 Required: 1-. Calculate the expected profits for the two advertising campaigns. (Enter your answers in thousands of dollars) Expected Campaign Campaign
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