6. Individual Problems 19-6 You need to hire some new employees to staff your star'tup venture. You know that potentlal employees are dlstrlbuted throughout the population as follows, but you Can't distinguish among thern: Employee Value Proba $45,000 0.1 $62,000 01 $79,000 01 596,000 Ull $113,000 01 $130,000 D1 $147,000 01 $154,000 D1 $181,000 01 $198,000 D1 The expetted value of hiring one employee ls:ll Suppose you set the salary of the position equal to the expected value of an employee. Assume that employees will not work for a salary below their employee value' The expetted value of an employee who would apply for the positlon, at thls salary, BE. Given this adverse selettlon, your most reasonable salary offer [that ensures you do not lose money} is v l 6. Individual Problems 1976 You need to hire some new employees to staff your startup venture. You know that potential employees are distributed throughout the population as Follows, but you can't distinguish among them: Employee Value $45,000 $62,000 579,000 5 9 6,0 00 s 1 13,000 5 130,000 5 147,000 5 154,000 5 101,000 $198,000 The expected value of hiring one employee i_ . Suppose you set the salary of the position equal to the expected value of an em pioyee. Assume that em employee value. The expected value of an employee who would apply for the position, at this salary, is Given this adverse selection, your most reasonable salary otter (that ensures you do not lose money) is Probability 0.1 0.]. $79,000 $62,000 not work for a salary below their