In two years, what is your expected annual compensation from the mature company? In two years, what is your expected annual compensation from the start up? How much would the start-up have to offer you now in order for the expected compensation to be the same for either job?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
You have received a job offer with total compensation of $70,000 per year from a mature company. You have also received a job offer to earn $90,000 per year from a start-up. You are willing to take either job, but you are concerned that the start-up will fail, and you will be unemployed with $0 compensation in two years. You estimate the
- 10% if you work for the mature company and
- 50% if you work for the start-up.
In two years, what is your expected annual compensation from the mature company?
In two years, what is your expected annual compensation from the start up?
How much would the start-up have to offer you now in order for the expected compensation to be the same for either job?
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