For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each possible outcome multiplied by the probability of the event occurring.

You wish to hire Ron to manage your Calgary operations. The profits from the operations depend partially on how hard Ron works, as follows.

	Profit Probabilities
	Profit=$20,000	Profit=$55,000
Lazy	70%	30%
Hard worker	30%	70%

If Ron is lazy, he will surf the Internet all day, and he views this as a zero-cost opportunity. However, Ron views working hard as a "personal cost" valued at $2,000. What fixed percentage of the profits should you offer Ron? Assume Ron cares only about his expected payment less any "personal cost."

You should offer Ron at least enter your response here% of the profits.