5. Expected Value (probability-adjusted expected value) (15 pts): Serena read recently that there is a shortage...

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5. Expected Value (probability-adjusted expected value) (15 pts): Serena read recently that there is a shortage of master's prepared electrical engineers in the specialty she is getting her degree in, and projections are that starting salaries may be as high as $130,000 when she completes her degree. a. What Expected Value to calculate IPP should Serena use if she thinks her chances of getting the higher salary are 20%? b. What Expected Value should Serena use to calculate IPP if Serena thinks there is both a 20% chance of getting the higher salary AND also a 10% chance that she'll only earn $95,000 when she graduates? EXTRA credit: Calculate IPP using the Expected Value answer from 5b and assuming the Costs of the "Reduce Work to 50%" scenario above. 5. Expected Value (probability-adjusted expected value) (15 pts): Serena read recently that there is a shortage of master's prepared electrical engineers in the specialty she is getting her degree in, and projections are that starting salaries may be as high as $130,000 when she completes her degree. a. What Expected Value to calculate IPP should Serena use if she thinks her chances of getting the higher salary are 20%? b. What Expected Value should Serena use to calculate IPP if Serena thinks there is both a 20% chance of getting the higher salary AND also a 10% chance that she'll only earn $95,000 when she graduates? EXTRA credit: Calculate IPP using the Expected Value answer from 5b and assuming the Costs of the "Reduce Work to 50%" scenario above.

Answer rating: 100% (QA)

a To calculate the expected value Serena needs to multiply the potential outcomes by their respectiv... View the full answer