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In a bad economy, a CEO has a 4% chance of meeting earnings estimates at regular effort, and a 6% at extraordinary effort. Extraordinary effort

In a bad economy, a CEO has a 4% chance of meeting earnings estimates at regular effort, and a 6% at extraordinary effort. Extraordinary effort costs the CEO $10,000 in extra effort. How a large of a bonus should the CEO be paid for meeting estimates to encourage extraordinary effort?

Select one: a. $100,000 b. $500,000 c. $200,000 Incorrect d. $250,000

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