Angie is considering 3 alternatives for employment. Each is a sales position with a starting salary of $32,000. The bonus plans for each, and Angie's estimation for the probabilities of meeting the bonus criteria are below. Assuming everything else is equal, which job should Angie accept?
Alternative A
Sales: $200K Bonus: $3000 Probability: .6
Sales: $400K Bonus: $5000 Probability: .4
Alternative B
Sales: $300K Bonus: $2000 Probability: .4
Sales: $500K Bonus: $3500 Probability: .4
Sales: $700K Bonus: $6000 Probability: .2
Alternative C
Sales: $200K Bonus: $2500 Probability: .4
Sales: $450K Bonus: $4000 Probability: .3
Sales: $600K Bonus: $5000 Probability: .2
Sales: $750K Bonus: $6000 Probability: .1
A) Alternative A
B) Alternative B
C) Alternative C
D) Alternative A and C are equal
Correct Answer:
Verified
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