A company that manufactures baseball gloves is contemplating whether to increase its advertising budget by $3 million for next year. If the expanded advertising campaign is successful, the company expects sales to increase by $4.8 million next year. If the advertising campaign fails, the company expects sales to increase by only $900,000 next year. If the advertising budget is not increased, the
company expects sales to increase by $450,000 . Identify the possible outcomes in this decision-making problem.
a. Two choices: (1) increase the budget and (2) do not increase the budget.
b. Four consequences resulting from the Increase/Do Not Increase and Successful/Not Successful combinations.
c. Two choices: (1) campaign is successful and (2) campaign is not successful.
d. The increase in sales dollars next year.
B
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