John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believes that he has a 50-50 chance of earning the bonus. What is the expected value of John's income for each job offer?

1. E(U) = $50,000

2. E(U) = $50,000

Explanation:

Under Option 1:

The expected value E(U) is computed as:

He will get the fixed salary of $50,000. So, its expected value E(U) will be:

E(U) = $50,000

Under Option 2:

The expected value E(U) is computed as:

He will get the fixed salary of $20,000 and in addition bonus of $60,000. S0,

In this there is 2 conditions, which are:

1st Condition:

If he get bonus, then the salary would be likely to

= $20,000 + $60,000

= $80,000

2nd Condition:

If does not get bonus, then the salary would be:

= $20,000 + $0

= $20,000

So, there is chance of 50-50 for earning the bonus, in that case E(U) will be:

E(U) = 50% of $80,000 + 50% 0f $20,000

= (0.5080000) + (0.5020000)

= $40,000 + $10,000

= $50,000

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a