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The JKL company is seeking to hire few marketing executives. The manager of the Human Resource Department is having a hard time to select the
The JKL company is seeking to hire few marketing executives. The manager of the Human Resource Department is having a hard time to select the best candidates as the actual potentials of the candidates cannot be fully identified during the interview. He however certain that the pool of candidates can be divided into two groups (A and B) in which A are those candidates with high productivity and B are candidates with low productivity. Each of the marketing executive from group A have the capabilities to increase the sales amounted to RM27,500 yearly to the company's revenue while those from group B will only add RM15,000 yearly to the company's revenue. The JKL company will offer 8 years contract of service to those being hired. The difference in the productivity of the candidates can be assessed through the cost of obtaining educational level, y. The cost of obtaining educational level, y for group A and B is given as CA = 12500y and CB =25000y respective. Obviously, the cost of obtaining education is more costly for those from the low productivity group
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