This question has multiple parts. Imagine you are a firm that needs to hire a new employee. Salary offer is $75000. Consider just 2 periods for simplicity (and ignore discounting}. . 2candidates - o Candidate\" a' is a safe bet: they already have exx $90000 of value each year with certainty 5 :- Candidate "b" doesn't have any experience. They at value. but they may also he incompetent, and 6 Suppose first you have to keep the candidate for 2 years {Log The expected value of prots from hiring candidate \"a" II The expected value of prots from hiring candidate "b" I! Suppose that now you have the option to let a candidate go a The expected value of prots from hiring candidate "a" It The expected value of prots from hiring candidate \"b" It 47500 40000 40000 40000 40000 0" 10000 20000 30000 40000 47500 a sector. You knott.i that they can produce tr {with probability 30%), and lead to $300000 xm'ooo {with probability 70%} at an employee go if they are incompetent} l l iler hiring them. i QUESTION I5 This question has multiple parts. Imagine you are a firm that needs to hire a new employee. Salary offer is $5000. Consider just 2 periods for simplicity (and ignore discounting}. e 2 candidates 0 Candidate \"a" is a safe bet: they already have experience in the sector. You know that they can produce $90000 of value each year with certainty :- Candidate "b" doesn't have any experience. They may be a star {with probability 30%). and lead to $300'DDD of value, but they may also be incompetent, and cause a loss of 5550'000 {with probability rose} Suppose first you have to keep the candidate for 2 years {i.e. you cannot let an employee go if they are incompetent} The expected value of prots from hiring candidate "a" is n- 0 The expected value of prots from hiring candidate "b" is Suppose that now you have the option to let a candidate go after 1 year after hiring them. The expected value of prots from hiring candidate "a" is di- 0 The expected value of prots from hiring candidate "b" is