Each breakdown of a graphic plotter table at Airbus Industries costs $50. Following is the historical breakdown distribution: Number of breakdowns Daily breakdown probability 0.11 0.21 0.45 0.15 0.08 2 4 For Airbus Industries, the expected daily breakdown cost = dollars per day (round your response to two decimal places)

Merrill Kim Sharp has a system composed of three components in parallel. The components have the following reliabilities: R1 0.87, R2 0.92, and R3 0.84. The overall reliability of the system- % enter your response as a percentage rounded to two decimal places

As VP for operations at Méndez-Pinero Engineering, you must decide which product design, A or B, has the higher reliability. B is designed with backup units for components R3 and R4 Product Design A Rs=0.94 R1 0.98 R3 0.997 R40.992 Product Design B 0.98 0.94 0.982 0.96 0.92 0.96 2 The overall reliability of the system provided in Design A = % enter your response as a percentage rounded to two dec mal places The overall reliability of the system provided in Design B = | % enter your response as a percentage rounded to two decimal places)

. The Hollywood film industry garners a surprisingly large percentage of its revenues (nearly 75 percent) from foreign sales. This number is surprisingly large given several constraints that US films have when selling internationally. First, there are numerous piracy concerns. Even in the European Union (EU), where countries like Britain and France impose fines on producers and buyers of pirated content, other countries such as Spain have long been havens for the distribution of illegal movies and music. In February 2011, Spain passed a new law to provide better protection of copyrighted material, but enforcement may be difficult in a country where nearly 50 percent of all Internet users admit to illegally downloading copy-righted content (twice the EU average rate).

China is infamous for its rampant business in illegal materials. In 2010, a Chinese government report found that the market for pirated DVDs was $6 billion. As a comparison, the total box-office revenues in China in 2010 were $1.5 billion. One reason is that ticket prices for movies in China are steep and movies are considered luxury entertainment that few can afford. Another reason that “black-market” sales in China are so high is that legitimate sales often are not allowed. China allows only about 20 new non-Chinese movies into its theaters each year. Additionally, it has strict licensing rules on the sale of home-entertainment goods. Chinese censors are not likely to approve the sale of official DVDs for movies such as Lara Croft Tomb Raider: The Cradle of Life, Black Swan, and The Social Network. As a result there is often no legitimate product competing with the bootlegged offerings available via DVD and the Internet in China.

Movie studios are moving to simultaneous worldwide releases of expected block-busters in part to try to cut down on the revenues lost to piracy. International growth is expected to continue and take increasing shares of Hollywood film revenues, especially in the face of falling US DVD sales. China is reportedly building new cinema screens at a rate of three per day in 2011. Yet growth in China (and elsewhere) is not as profitable as traditional releases in the United States. For example, film distributors typically earn 50 to 55 percent of box-office revenues in America. The average in many other countries is closer to 40 percent (the rest goes to the cinema owner). But in China, a typical Hollywood film distributor gets only 15 percent of the box-office ticket revenue.

Given the forces on the Hollywood movie industry, is it likely we will see a decrease in the production of regional- and US-centered movies, or will small independent movie producers pick up a higher share of the domestic US market? Please explain.

The Hollywood film industry garners a surprisingly large percentage of its revenues (nearly 75 percent) from foreign sales. This number is surprisingly large given several constraints that US films have when selling internationally. First, there are numerous piracy concerns. Even in the European Union (EU), where countries like Britain and France impose fines on producers and buyers of pirated content, other countries such as Spain have long been havens for the distribution of illegal movies and music. In February 2011, Spain passed a new law to provide better protection of copyrighted material, but enforcement may be difficult in a country where nearly 50 percent of all Internet users admit to illegally downloading copy-righted content (twice the EU average rate). China is infamous for its rampant business in illegal materials. In 2010, a Chinese government report found that the market for pirated DVDs was $6 billion. As a comparison, the total box-office revenues in China in 2010 were $1.5 billion. One reason is that ticket prices for movies in China are steep and movies are considered luxury entertainment that few can afford. Another reason that “black-market” sales in China are so high is that legitimate sales often are not allowed. China allows only about 20 new non-Chinese movies into its theaters each year. Additionally, it has strict licensing rules on the sale of home-entertainment goods. Chinese censors are not likely to approve the sale of official DVDs for movies such as Lara Croft Tomb Raider: The Cradle of Life, Black Swan, and The Social Network. As a result there is often no legitimate product competing with the bootlegged offerings available via DVD and the Internet in China. Movie studios are moving to simultaneous worldwide releases of expected block-busters in part to try to cut down on the revenues lost to piracy. International growth is expected to continue and take increasing shares of Hollywood film revenues, especially in the face of falling US DVD sales. China is reportedly building new cinema screens at a rate of three per day in 2011. Yet growth in China (and elsewhere) is not as profitable as traditional releases in the United States. For example, film distributors typically earn 50 to 55 percent of box-office revenues in America. The average in many other countries is closer to 40 percent (the rest goes to the cinema owner). But in China, a typical Hollywood film distributor gets only 15 percent of the box-office ticket revenue.

What alternatives could movie producers develop to help combat the piracy of first-run movies and follow-on DVD and Internet releases?

Select a product or service that you have not used previously, and try it out. Share your reactions, and mention if the product’s marketing had any influence on your decision to try it. This is another chance to be creative: you may want to try a new food or restaurant, experiment with a gadget, read a new magazine, watch a new movie or TV program, or even go to a website that you have seen advertised. During the week, reply to at least two of your classmates posts with substantive comments, which you can count towards the written requirements. Describe the marketing processes at work in your decision (pricing, distribution, promotion, etc).