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?

A) The salary of $50,000 is greater than the expected commission of $49,630.
B) The salary of $50,000 is greater than the expected commission of $48,400.
C) The salary of $50,000 is less than the expected commission of $50,050.
D) The salary of $50,000 is less than the expected commission of $52,720.

Question

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?

A) The salary of $50,000 is greater than the expected commission of $49,630. 
B) The salary of $50,000 is greater than the expected commission of $48,400. 
C) The salary of $50,000 is less than the expected commission of $50,050. 
D) The salary of $50,000 is less than the expected commission of $52,720.

Quizplus · Accepted Answer

The Answer of 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?

A) The salary of $50,000 is greater than the expected commission of $49,630. 
B) The salary of $50,000 is greater than the expected commission of $48,400. 
C) The salary of $50,000 is less than the expected commission of $50,050. 
D) The salary of $50,000 is less than the expected commission of $52,720.

You Are Considering a Sales Job That Pays You on a Commission