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Conclusion:

to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.

Why?

Premise:
Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction can be gathered from audience who actually purchased tickets.

The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?
B and C are irrelevant.

To me A & D are close but A wins.

Argument is about when to make investment. Lets start from E and D and then we will come to A.

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.
Negation: A) Large marketing investments made before the opening weekend yield greater profits than small initial marketing investments.
If that is true then it impacts the conclusion to limit the screening and initial budget.


B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films.

C) A film’s prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.
>>
#1: We are concerned abt when to invest. This option doesn't mentions that.
#2: Even if there is predictable behavior, does it affect conclusion. We don't know as argument doesn't mention any detail to evaluate that.


E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.
>> Marked items make the option vulnerable to doubt. Even if its not a strong indicator may be its sufficient to make the final call on investment hence argument doesn't fall also lifetime performance is too extreme assumption in regard to make sound investment in starting to gain max profit.

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