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The management of Motion Pictures Cinema is considering whether to show an advance screening of a forthcoming action movie. The hiring of the film will
The management of Motion Pictures Cinema is considering whether to show an advance screening of a forthcoming action movie. The hiring of the film will cost the cinema and the revenue obtained from the screening will depend upon two factors, namely the number of people attending the movie and the amount spent by each person on confectionary.
Past experience suggests that the average audience if the screening proves to be very popular is people, if popular people and if unpopular people. In an attempt to attract cinema goers to view the film, a ticket price of per person will be charged.
The amount spent on confectionary per person does not depend upon the popularity of the film and will be either or person. The profit margin on confectionary sales is The estimated probabilities for the audience and the amount spent on confectionary are shown in the table below:
tableAudience size,Probability
tableConfectionary spend,
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