9781118041581

24 Answers to Odd-Numbered Problems

100

90

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$ 50

75

Success

75

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Failure

No

No

Redesign

$125

$ 25

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75

$125

$ 25

$100

Redesign

125

92.5

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$100

No

Restriction

60

.5

Restrictions

No

No

Redesign

Redesign

$125

.6

.4

60

$100

$25

$0

chance of a lawyer responding is Pr(RƒL)  .09/.58  .155. The

promotion is most effective with students.

b. The table identifies the market segments being reached by the

promotion. More important, it measures the effectiveness of the

promotion with respect to each segment.

5. a. The following decision trees show the consortium’s expected profits
   from having perfect information in each instance.

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