You are considering a sales job that pays you on a commission basis or a salaried position that pays
you $50,000 per year. Historical data suggests the following probability distribution for your
commission income.
Which job has the higher expected income?
Commission
Probability of
Occurrence
$15,000 .15
$35,000 .20
$48,000 .35
$67,000 .22
$80,000 .18
A) The salary of $50,000 is greater than the expected commission of $48,400.
B) The salary of $50,000 is less than the expected commission of $52,720.
C) The salary of $50,000 is less than the expected commission of $50,050.
D) The salary of $50,000 is greater than the expected commission of $49,630.
D
You might also like to view...
What is deregulation?
What will be an ideal response?
Which of the following is true of public policies and pricing?
A) The government imposes no limits on intrastate pricing issues. B) The Robinson-Patman Act governs interstate commerce. C) Companies have free rein when it comes to setting prices. D) The Sherman Act governs intrastate commerce. E) The Clayton Act encourages the formation of monopolies.