M2 For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each probable outcome multiplied by the probability of the event occuringYou wish to hire Ron to manage the Dallas operations of your company. The profits from the operations depend partially on how hard Ron works as followsLazyHard workerProbabilitiesProfit $40,00040%80%Profe$15,00060%20%If Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron would view working hand as a personal cost valued at $1.000 What fed percentage of theprofits should you offer Ron? Assume Ron only cares about his expected payment less any "personal cost"You should offer Ron at least of the profits. (Round your response to two decimal places)

The expected value of an event is a probability-weighted average, meaning it is the sum of the…

Answered: For this problem, use the fact that the…

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter6: Data Mining

Section: Chapter Questions

Problem 6P

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Employee retention is a major goal for Dynamic Thermoforming, Inc.Feedback from the employees had focused on the need for a company-sanctioned retirement program. In response, the company will be offering a 401(k) retirement program complete with a number of different investment choices, including some of the top mutual fund families. In addition, the first 3% of an employee's salary contributed would be fully matched by the company. Quentin Avery, a sales manager with Dynamic Thermoforming, decides to put 3% of his $6,000 monthly salary into an international growth fund offered through the new 401(k) plan. The current net asset value is 17.94 and the year-to-date return is plus 4.9%. How many shares will Quentin be able to purchase each month, and what was the net asset value of the fund at the beginning of the year?
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