Problem 4: Training and Skills Pamela works for Stitchfix, which values her background in logistics and fashion. Pamela is considering leaving to work for Amazon, which would only value her logistics knowledge. There are three training options available to her. The table below shows the earnings gain from each option. Training Option Productivity Increase Stay Leave Weight(%) Value of Training Weight (%) Value of Training 100% Fashion Fashion Logistics $1,200 / month 0 50 50 0 100 60% Fashion 40% Logistics Fashion Logistics $900/ month $500/month 50 50 0 100 100% Logistics Fashion Logistics 0 $1,000/month 50 50 0 100 a. First, let's examine the gain in earnings from each training option if Pamela were to stay at Stitchfix. i. How much would Pamela gain in earnings from the option that involves 100% investment in fashion knowledge? ii. How much would Pamela gain in earnings from the option that involves 60% investment in fashion knowledge and 40% investment in logistics knowledge? iii. How much would Pamela gain in earnings from the option that involves 100% investment in logistics knowledge? iv. If Pamela were to stay at Stitchfix, which option would she choose? b. Next, let's examine the gain in earnings from each training option if Pamela were to leave for Amazon. i. How much would Pamela gain in earnings from the option that involves 100% investment in fashion knowledge? ii. How much would Pamela gain in earnings from the option that involves 60% investment in fashion knowledge and 40% investment in logistics knowledge? iii. How much would Pamela gain in earnings from the option that involves 100% investment in logistics knowledge? iv. If Pamela were to leave for Amazon, which option would she choose? c. Based on the gain to earnings alone, which employer and training option should Pamela choose? Problem 4: Training and Skills Pamela works for Stitchfix, which values her background in logistics and fashion. Pamela is considering leaving to work for Amazon, which would only value her logistics knowledge. There are three training options available to her. The table below shows the earnings gain from each option. Training Option Productivity Increase Stay Leave Weight(%) Value of Training Weight (%) Value of Training 100% Fashion Fashion Logistics $1,200 / month 0 50 50 0 100 60% Fashion 40% Logistics Fashion Logistics $900/ month $500/month 50 50 0 100 100% Logistics Fashion Logistics 0 $1,000/month 50 50 0 100 a. First, let's examine the gain in earnings from each training option if Pamela were to stay at Stitchfix. i. How much would Pamela gain in earnings from the option that involves 100% investment in fashion knowledge? ii. How much would Pamela gain in earnings from the option that involves 60% investment in fashion knowledge and 40% investment in logistics knowledge? iii. How much would Pamela gain in earnings from the option that involves 100% investment in logistics knowledge? iv. If Pamela were to stay at Stitchfix, which option would she choose? b. Next, let's examine the gain in earnings from each training option if Pamela were to leave for Amazon. i. How much would Pamela gain in earnings from the option that involves 100% investment in fashion knowledge? ii. How much would Pamela gain in earnings from the option that involves 60% investment in fashion knowledge and 40% investment in logistics knowledge? iii. How much would Pamela gain in earnings from the option that involves 100% investment in logistics knowledge? iv. If Pamela were to leave for Amazon, which option would she choose? c. Based on the gain to earnings alone, which employer and training option should Pamela choose