A graduating MBA student has job offers from two brokerage firms.Firm #1 pays a straight salary of $70,000 (but no commission bonuses).Firm #2 pays a salary of $6,000 plus a commission bonus, with a fixed bonus schedule based on annual sales; the potential commission bonus for firm #2's job is as follows: $150,000 with a probability of 11%, $50,000 with a probability of 83%, $20,000 with a probability of 5%, and zero with a probability of 1%.

(a)What is the expected monetary value of Firm #2's job?

(b)The student claims to be indifferent between the two job offers.If this is true, is the student risk averse, risk loving, or risk neutral, and why?