Question: What is the optimal decision based on the Pessimistic approach? Question 2 options: Strong Economy Current job New job None of the answers provided is
What is the optimal decision based on the Pessimistic approach?
Question 2 options:
| Strong Economy | |
| Current job | |
| New job | |
| None of the answers provided is correct. | |
| Weak Economy |
Hugh is considering transitioning to a new job next year. He will either keep his current job which pays a net income of $70,000 or switch to a new job. If he changes jobs, his net income will vary depending on the state of the economy. He estimates that the economy will be Strong with 30% chance ( $85,000 net income), Average with 30% chance ($74,000 net income), or Weak with 40% chance ($63,000 net income)
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