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Create a pay off table for the different alternatives, calculate EVwPI & EVoPI It is Dec.4th and Ana is close to graduating. She has already
Create a pay off table for the different alternatives, calculate EVwPI & EVoPI
It is Dec.4th and Ana is close to graduating. She has already received an offer from firm A for 72000 per year. She has until Feb 4th to decide whether to accept the offer. Ana has been recommended highly to consulting firm B and she feels that there is an excellent chance that they would give her an offer for 80000. However, they are not prepared to make any decision until Feb 19th. If they made her an offer, she would need to decide by Mar.1st. She also has the option of taking part in the job fair in the middle of April and she is fairly confident that she could get a job at that time, but she is not sure what she would be paid. Assume that Ana views all of these jobs as excellent opportunities, and that her only differentiating factor is money. Ana has decided to maximize her expected salary. Her best guesses on the probability of getting a job are as follows: Probability of getting Job at firm B: 60% Different possibilities for job fair offers: Job fair job 1) 90000 at 10% probability Job fair job 2) 70000 at 50% probability Job fair job 3) 60000 at 40% probabilityStep by Step Solution
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