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Q2. Suppose that sales by a sales assocrate is given by the express10n, Sales = 3UU2LC + 81, where e continues to be effort in

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Q2. Suppose that sales by a sales assocrate is given by the express10n, Sales = 3UU2LC + 81, where e continues to be effort in terms of work put in by the associate and is a random variable that denotes the health of the economy (business cycle). Assume that Q is distributed with a mean (average or expected value) of 0 and a variance of $2. The sales associate is risk averse. Assume that their Certainty Equivalent (CE) Pay is 2 given by the expression CE Pay = E(Pay) - (%)E'$EV(Pay), where @ is a term that measures the degree of the sales associates aversion to risk. If '$ is larger the person is more averse to risk, if % = 0 the person is risk neutral (doesn't care about risk), and if %

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