Suppose that in Exercise 22.32 a random sample of 25 radio listeners revealed that 2 people would be regular listeners of the station. What is the optimal decision now?

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.