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Pensacola Amusement is considering two types of tickets: del…

Posted byAnonymous February 8, 2024February 8, 2024

Questions

Pensаcоlа Amusement is cоnsidering twо types of tickets: deluxe or bаsic. The marketing manager believes there is a 50% probability of a good market and a 20% probability of a fair market. The demand forecasts and revenues per ticket are in Figure 2 and Table 1. Figure 2. Pensacola Amusement Ticket Design Decision Tree Table 1. Pensacola Amusement Ticket Forecasts and Revenues Design Good Market Forecast Good Market Revenue/ticket Fair Market Forecast Fair Market Revenue/ticket Poor Market Forecast Poor Market Revenue/ticket Deluxe 920 tickets $15/ticket 820 tickets $15/ticket 720 tickets $15/ticket Basic 1,370 tickets $10/ticket 1,280 tickets $10/ticket 1,100 tickets $10/ticket a) Using Table 1, the Deluxe ticket revenue forecast for a good market is [DelGoodRevenue].  b) Using Table 1, the Deluxe ticket revenue forecast for a fair market is [DelFairRevenue].  c) Using Table 1, the Deluxe ticket revenue forecast for a poor market is [DelPoorRevenue].  d) Using Table 1, the total expected Deluxe ticket revenue is [EMVDel]. e) Using Table 1, the Basic ticket revenue forecast for a good market is [BasGoodRevenue].  f) Using Table 1, the Basic ticket revenue forecast for a fair market is [BasFairRevenue].  g) Using Table 1, the Basic ticket revenue forecast for a poor market is [BasPoorRevenue].  h) Using Table 1, the total expected Basic ticket revenue is [EMVBas].  i) Using Table 1, the recommended ticket design based on decision tree analysis is [DTA5].

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