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To encourage maximum pertormance, your company has a prot sharmg program. your bonus is based on GAAP operating earnings of the company (expressed in millions)

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To encourage maximum pertormance, your company has a prot sharmg program. your bonus is based on GAAP operating earnings of the company (expressed in millions) as follows: (i) If 6MP operating earnings are 90 or less, your bonus is 0. (ii) If GMP operating earnings are P and P is 90, then your bonus is equal to your salary times (P 90)!100. (iii) There is no maximum for the bonus. GAAP operating earnings follow a single-parameter Pareto distribution with parameter 0 = 80 and a = 3. Your salary is 50,000. Calculate your expected bonus. {9 marks)

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