In Exercise 22.32, suppose that it is possible to survey radio listeners to determine whether they would tune in to the station if the format changed to rock and roll. What would a survey of size 2 be worth?

In exercise 22.32

A radio station that currently directs its programming toward middle age listeners is contemplating switching to rock-and-roll music. After analyzing advertising revenues and operating costs, the owner concludes that, for each percentage point of market share, revenues increase by $100,000 per year. Fixed annual operating costs are $700,000. The owner believes that, with the change, the station will get a 5%, 10%, or 20% market share, with probabilities .4, .4, and .2, respectively. The current annual profit is $285,000.