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Your head of marketing comes to you with what she calls a brilliant marketing campaign. The current marketing campaign that has been used for several
Your head of marketing comes to you with what she calls a "brilliant" marketing campaign. The current marketing campaign that has been used for several years generates 12 million of economic profit (expected value=12million).The new "brilliant" campaign costs $7M, and is a go-big-or-go-home campaign: there's a 60% chance it will increase revenue by $30M, and a 40% chance it will increase revenue by only $5M. Do you approve the new "brilliant" campaign or stay with the old marketing strategy (status quo)?
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