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    Movies online (A) (Chinese Version)

    Rata, Cristina ; Ariño, Miguel Angel ; Baucells Alibés, Manel

    • Reference: AD-277-ZH

    • Year: 2012

    • Number of pages: 2

    • Geographic Setting: Estados Unidos

    • Publication Date: Jul 1, 2002

    • Source: IESE (España)

    • Type of Document: Case

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    Description

    A futuristic situation is envisioned where a provider of movies online has to negotiate with a studio the distribution of a movie. The decision boils down to the choice between two alternative license arrangements: a fixed payment and a variable payment. The variable payment requires the elicitation of the (continuous) probability distribution of sales by means of five percentiles.

    Learning Objective

    Introduction to continuous probability distributions.

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    Keywords

    Probability