Q8 Ch 8 (15%) You wish to hire Ron to manage your Dallas operations. The profits from the operations depend partially on how hard Ron works, as follows: Profit Probabilities Profit $10,000 Profit = $50,000 60% 40% 20% 80% Lazy Hard worker If Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron views working hard as a "personal cost valued at $1,000. What fixed percentage of the profits should you offer Ron? Assume Ron cares only about his expected payment less any "personal cost