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You hired Helen to manage your coffee shop. The profits that you obtain from the coffee shop depend partially on how hard Helen works, and partially on chance: Probabilities of profit Profit = $1,000 Profit= $6,000 Helen works hard 0.5 0.5 Helen does NOT work hard 0.7 0.3 If Helen works hard, she experiences a personal cost of $500. If she does NOT work hard, she experiences no personal cost Assume Helen only cares about her payment minus personal cost What minimum fxed percentage of profits should you offer Helen to motivate her to work hard? OA Just above 31.25% OB Just above 50% OC. Just above 20% OD Just above 25%

You hired Helen to manage your coffee shop. The profits that you obtain from the coffee shop depend partially on how hard Helen works, and partially on chance: Probabilities of profit Profit = $1,000 Profit= $6,000 Helen works hard 0.5 0.5 Helen does NOT work hard 0.7 0.3 If Helen works hard, she experiences a personal cost of $500. If she does NOT work hard, she experiences no personal cost Assume Helen only cares about her payment minus personal cost What minimum fxed percentage of profits should you offer Helen to motivate her to work hard? OA Just above 31.25% OB Just above 50% OC. Just above 20% OD Just above 25%

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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21 of 29 You hired Helen to manage your coffee shop. The profits that you obtain from the coffee shop depend partially on how hard Helen works, and partially on chance: Probabilities of profit Profit = $1,000 Profit = $6,000 Helen works hard 0.5 10.5 Helen does NOT work hard 0,7 0.3 If Helen works hard, she experiences a personal cost of $500. If she does NOT work hard, she experiences no personal cost Assume Helen only cares about her payment minus personal cost. What minimum fixed percentage of profits should you offer Helen to motivate her to work hard? OA Just above 31.25% OB Just above 50% OC. Just above 20% OD. Just above 25% Unsure
Transcribed Image Text:21 of 29 You hired Helen to manage your coffee shop. The profits that you obtain from the coffee shop depend partially on how hard Helen works, and partially on chance: Probabilities of profit Profit = $1,000 Profit = $6,000 Helen works hard 0.5 10.5 Helen does NOT work hard 0,7 0.3 If Helen works hard, she experiences a personal cost of $500. If she does NOT work hard, she experiences no personal cost Assume Helen only cares about her payment minus personal cost. What minimum fixed percentage of profits should you offer Helen to motivate her to work hard? OA Just above 31.25% OB Just above 50% OC. Just above 20% OD. Just above 25% Unsure
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