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(Solved): Victoria Metaverse Network must decide on which one of two new digital games to create: POLYGO or WI ...



Victoria Metaverse Network must decide on which one of two new digital games to create: POLYGO or WILDY. The costs of producing and operating the two games are similar and the average monthly subscription for either game could be low (15,000 subscribers), medium (58,000 subscribers), or high (96,000 subscribers). If the company chooses to create POLYGO, they will charge $26 per account for monthly subscription, and the probabilities of medium and low subscriptions are 0.26 and 0.5 respectively. For WILDY, there is a 40% chance that a competitive game will appear on the market. The probability of low subscription is 0.36 if no competitive game appears and 0.58 if a competitive game appears. The probability of medium subscription is 0.23 whether or not competition appears. The company will charge $29/month per account for subscription to WILDY if no competitive game appears but will only charge $20/month if competition appears. Construct a decision tree for the problem, where payoffs are total monthly subscription in dollars. For example, if POLYGO is created and subscription is medium, then subscription dollars will be $26*58000 = $1,508,000. Report answers accurate to the nearest dollar. What is the expected monetary value for POLYGO? $ 1186120 Correct What is the expected monetary value for WILDY if there is no competition? $ 1685300 Incorrect What is the expected monetary value for WILDY if competition appears? $ 805600 Correct What is the expected monetary value for WILDY? $ 1333420 Incorrect What is the expected monetary value of the optimal decision? $ 1333420



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