Attempts I I Average l' 3 .7 . Individual Problems 19-6 You need to hire some new employees to staff your startup venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them: Employee Value Probability $55,000 0.1 $30,000 0.1 $95,000 0.1 $110,000 0.1 $125,000 0.1 $140,000 0.1 $155,000 0.1 $1?0,000 0.1 $105,000 0.1 $200,000 0.1 The expected value of hiring one employee is . $65,000 Suppose you set the salary of the position equal to the expected value of an employee. Assume that em ot work for a salary below their $110,000 employee value. $9 5,000 The expected value of an employee who would apply for the position, at this salary, is $80,000 Given this adverse selection, your most reasonable salary offer (that ensures you do not lose money) is V . Continue WlThOUI saving