Florentino Allers is the production manager of Electronics Manufacturer. Due to limited capacity, the company can only produce one of two possible products: An industrial motherboard with a 80% probability of making a profit of $1 million and a 20% probability of making a profit of $150,000. . A regular motherboard with a 100% chance of making a profit of $690,000. Florentino will get a 20% bonus from his department. Florentino has the responsibility to choose between the two products and is more of a risk-taker, more so than most of the top management at Electronics Manufacturer. A. Which option is Florentino more likely to choose and why? Florentino will choose the industrial motherboard since he is a risk-taker, and a 80% chance of a $1 million profit is much the $ (even though there is a 20% chance of a $150,000 profit with the industrial motherboard). higher than B. Which option would the company be more likely to choose and why? lower than The company, being a the industrial motherboard is $ only earning $150,000. C. What changes should the company make to Florentino's compensation to avoid unnecessary risks? The company should the size of the bonus and taker than Florentino, would prefer the regular motherboard because of the certainty or earning $ the potential difference of $ While the expected value of is to offset the (20% chance) of the salary, thus leveling the playing field when it comes to risk-taking. B. Which option would the company be more likely to choose and why? The company, being a the industrial motherboardi taker than Florentino, would prefer the regular motherboard because of the certainty of earning $ the potential difference of $ is to offset the While the expected value of (20% chance) of only earning $150,000. higher risk lower risk C. What changes should th The company should hake to Florentino's compensation to avoid unnecessary risks? the size of the bonus and the salary, thus leveling the playing field when it comes to risk-taking. B. Which option would the company be more likely to choose and why? The company, being a the industrial motherboard is $ only earning $150,000. taker than Florentino, would prefer the regular motherboard because of the certainty of earning $ the potential difference of $ is to offset the While the expected value of (20% chance) of higher C. What changes should the company make to Fl The company should compensation to avoid unnecessary risks? lower the size onus and the salary, thus leveling the playing field when it comes to risk-taking. B. Which option would the company be more likely to choose and why? The company, being a the industrial motherboard is $ only earning $150,000. taker than Florentino, would prefer the regular motherboard because of the certainty of earning the potential difference of $ While the expected value of is to offset the (20% chance) of enough C. What changes should the company make to Florentino's compensation to avoid unnecessary risks? The company should the size of the bonus and not enough the salary, thus leveling the playing field when it comes to risk-taking. The company, being a the industrial motherboard is $ only earning $150,000. taker than Florentino, would prefer the regular motherboard because of the certainty of earning $ the potential difference of $ is to offset the While the expected value of (20% chance) of higher risk lower risk the salary, thus leveling the playing field when it comes C. What changes should the company make to Florentino's compensation to avoid unnecessary risks? the size of the bonus and The company should C. What changes should the company make to Florentino's compensation to avoid unnecessary risks? The company should the size of the bonus and the salary, thus leveling the playing field when it comes to risk-taking. increase reduce C. What changes should the company make to Florentino's compensation to avoid unnecessary risks? The company should the size of the bonus and increase reduce the salary, thus leveling the playing field when it comes to risk-taking