Your current salary is a fixed sum of $105,625 per year. You have an offer for...

 

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Your current salary is a fixed sum of $105,625 per year. You have an offer for another job. The salary there is a flat $52,900 plus a chance to earn an additional $123,500 if the company does well. Assume that your utility from income can be 'expressed as: U=√Income. For example, at an income level of $100, your utility level is 10; your utility level from the current salary of $105,625 is 325. The probability of success for the company must be equal to at least. percent to induce you to take this job. (Round your response to two decimal places.) Your current salary is a fixed sum of $105,625 per year. You have an offer for another job. The salary there is a flat $52,900 plus a chance to earn an additional $123,500 if the company does well. Assume that your utility from income can be 'expressed as: U=√Income. For example, at an income level of $100, your utility level is 10; your utility level from the current salary of $105,625 is 325. The probability of success for the company must be equal to at least. percent to induce you to take this job. (Round your response to two decimal places.)

Answer rating: 100% (QA)

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