Business Case Studies & Business Publications

Chance Encounters II

Pfeifer, Phillip E...

Case

Chance Encounters II

Pfeifer, Phillip E.

QA-0783 | Published February 6, 2012 | 8 pages Case

Collection: Darden School of Business

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Movie-industry analyst David Fitzhugh must estimate the value of the sequel rights associated with Chance Encounters (CE), a soon-to-be-produced movie. The producers of CE intend to use the cash from the sale of the sequel rights to help fund production of the original movie. With the purchase of the sequel rights to CE, the client intends to produce a sequel to CE--should the original movie prove successful.

This case provides students the following opportunities: -Practice building and using simulation models in unstructured situations. -See the models do not need to be literal to be useful. -Practice using data to construct probabilistic forecasts. -Explore how simulaiton modeling complements options thinking.