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Worcitino Nlers is the production mansger of Blectranics Manufaxturer, Due to kmited copocty, the company can cnly produce one of two possible products - An

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Worcitino Nlers is the production mansger of Blectranics Manufaxturer, Due to kmited copocty, the company can cnly produce one of two possible products - An indistrial motherboard with a 75% probaboty of msking a profit of $1 million and a 25% probability of making a seofit of 5170,000 . - A regular motherboard weth a 100\% chance of making a prolit of $670,000. Clectronics Manioticturer. A. Which opoon is Flocentino more likely to choose and why? Florentino will choose the industrial mothebourd since he is a risk- takes, and a 75% chance of a $1 millon profit is mudh of a 5170,000 profit with the industrial motherbordy. a. Which option would the company be more lloely to choose and why? While the espectof value of the ind enal Thie company, being a takier than Florentino, would prefer the reqular motherbosid because of the cetanty of eamne 1 motherbosd is 1 C. What changes should the company mste to florentino's compensation to avoid unnecessary risks? The conpony should the site of the bonus and the salay, this leveling the plaping field when it comes to nsktaking Ferest ronad then won A. For a risk takec, whst prete levei is more attractive? Think of risk takeri and the assocated potential for the reward for doing so. in this dedison

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