Answered step by step
Verified Expert Solution
Question
1 Approved Answer
There is more to job satisfaction than money, but for the purposes of this scenario and the questions that follow, we are going to
There is more to job satisfaction than money, but for the purposes of this scenario and the questions that follow, we are going to ignore those other factors. You have two choices of major: acting or accounting, and your only consideration is based on the long-term payout you get from working in one of those professions. You consider that it is harder to get (and keep) a job as an actor, but movie stars can make a lot more money than accountants. Suppose that there are three basic considerations for how much money you make in either position: the type of job that you get, the expected salary for that job, and the length of your career. Specifically, Actors can: 1. Be either an occasional bit player (65% chance), workaday character actor (34% chance), or hollywood A-lister (1% chance) 2. Within each of those categories, an actor might have either a 10 year career (80% chance) or a 30 year career (20% chance) 3. Bit players make $25,000 per year, workaday character actors make $40,000 per year, and hollywood A-listers make $1,000,000 per year Meanwhile, accountants can either: 1. Be hired (95% chance) or not hired (5% chance) 2. Those that are hired may have either a 20 year career (40% chance) or a 40 year career (60% chance) 3. Accountants who are hired make $58,000 per year Before answering any questions, you should make two tree diagrams (one for the possible outcomes of becoming an accountant, and the other for becoming an actor). Each branch of your trees should end in a possible amount of lifetime earnings (calculated as the amount you make per year multiplied by the number of years you are working). Then, give your answers to the following questions in decimal form, rounded to two decimal places (i.e., a 57% probability should be represented as 0.57)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started