Suppose that there is a sales job opportunity that is entirely based on commission- Income earned...

 

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Suppose that there is a sales job opportunity that is entirely based on commission- Income earned depend on how much you sell. There are two outcomes: the first possible outcome is "successful" outcome where you earn $2000, and the second possible outcome is "less successful outcome" where you earn $1000. Suppose that each outcome occurs with probability 12. 1. What is the expected income for this job opportunity? 2. Calculate variance and standard deviation Q2) Now suppose that there is another sales job opportunity that pays a fixed salary of $1510. However it is known that there is a slight chance that the firm goes out of business in which case you earn $510 in severance pay. Suppose that the probability that the company does not go out of business is 0.99 and the probability that firm goes out of business is 0.01. 1. What is the expected income for this job? 2. Calculate variance and standard deviation Q3) Which job is risky? Suppose that there is a sales job opportunity that is entirely based on commission- Income earned depend on how much you sell. There are two outcomes: the first possible outcome is "successful" outcome where you earn $2000, and the second possible outcome is "less successful outcome" where you earn $1000. Suppose that each outcome occurs with probability 12. 1. What is the expected income for this job opportunity? 2. Calculate variance and standard deviation Q2) Now suppose that there is another sales job opportunity that pays a fixed salary of $1510. However it is known that there is a slight chance that the firm goes out of business in which case you earn $510 in severance pay. Suppose that the probability that the company does not go out of business is 0.99 and the probability that firm goes out of business is 0.01. 1. What is the expected income for this job? 2. Calculate variance and standard deviation Q3) Which job is risky?

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Q1 Sales Job Opportunity with Commission 1 Expected Income EX sumi pixi Where pi Probability of outc... View the full answer