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For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each probable outcome multiplied by the probability of the event occuring You wish to hire Ron to manage the Dallas operations of your company. The profits from the operations depend partially on how hard Ron works as follows Lazy Hard worker Probabilities Proft $40.000 40% 80% Proft $15.000 60% 20% It Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron would view working hand a profits should you offer Ron? Assume Ron only cares about his expected payment less any personal cost You should offer Ron at least of the profits. (Round your response to two decimal places) personal cost valued

For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each probable outcome multiplied by the probability of the event occuring You wish to hire Ron to manage the Dallas operations of your company. The profits from the operations depend partially on how hard Ron works as follows Lazy Hard worker Probabilities Proft $40.000 40% 80% Proft $15.000 60% 20% It Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron would view working hand a profits should you offer Ron? Assume Ron only cares about his expected payment less any personal cost You should offer Ron at least of the profits. (Round your response to two decimal places) personal cost valued

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each probable outcome multiplied by the probability of the event occuring You wish to hire Ron to manage the Dallas operations of your company. The profits from the operations depend partially on how hard Ron works as follows Lazy Hard worker Probabilities Profit $40,000 40% 80% Profe$15,000 60% 20% If Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron would view working hand as a personal cost valued at $1.000 What fed percentage of the profits should you offer Ron? Assume Ron only cares about his expected payment less any "personal cost" You should offer Ron at least of the profits. (Round your response to two decimal places)
Transcribed Image Text:For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each probable outcome multiplied by the probability of the event occuring You wish to hire Ron to manage the Dallas operations of your company. The profits from the operations depend partially on how hard Ron works as follows Lazy Hard worker Probabilities Profit $40,000 40% 80% Profe$15,000 60% 20% If Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron would view working hand as a personal cost valued at $1.000 What fed percentage of the profits should you offer Ron? Assume Ron only cares about his expected payment less any "personal cost" You should offer Ron at least of the profits. (Round your response to two decimal places)
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