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London Pop Concert TreePlan

Option 2, which is to advertise the concert in both Music Press and National Press, has the highest expected payoff according to the decision tree. This option would lead to a profit of $60 if ticket demand is high, but could potentially lose $60 or make a profit of $20 depending on if demand is medium or low. Overall, Option 2 provides the greatest chance for high ticket sales and profit compared to the other advertising options.

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Tri Septia Rahmawati Kahar
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284 views2 pages

London Pop Concert TreePlan

Option 2, which is to advertise the concert in both Music Press and National Press, has the highest expected payoff according to the decision tree. This option would lead to a profit of $60 if ticket demand is high, but could potentially lose $60 or make a profit of $20 depending on if demand is medium or low. Overall, Option 2 provides the greatest chance for high ticket sales and profit compared to the other advertising options.

Uploaded by

Tri Septia Rahmawati Kahar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Jodipati Alif Fitrahillah

29317451
London Pop Concert TreePlan

A. 1. The Problem: there is an event that is going to held, and they need to decide best option for
publication.
2. The Decision Nodes for the problem:
Option 1, Option 2, Option 3
3. State of Nature: the ticket demand (high, medium, low)
4. Company’s payoffs:
Option Low Medium High
1 -20 -20 100
2 -60 20 60
3 -100 -60 20

B. Decision Tree:
Jodipati Alif Fitrahillah
29317451
London Pop Concert TreePlan

C. Based on this decision tree, can be seen that option 2 or advertise on Music Press and National
Press had the highest ticket demand. This demand of ticket can be generated to profit with
selling the ticket that already demanded by customers.
D. The reservations of this option is the company need to make sure they had high demand ticket
to get highest profit.

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