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You wish to hire Ricky to manage your new Chicago office. The profits will depend partially on how Ricky does his job. If Ricky is
You wish to hire Ricky to manage your new Chicago office. The profits will depend partially on how Ricky does his job. If Ricky is lazy, he will surf the internet and game with his friends all day he views this as a $ opportunity cost. However, if he works hard, he will view it as having a $ personal cost. Assuming the outcomes shown in the probability table below, what percentage of profits should you offer Ricky to get his engaged behavior?
tableProfit $Profit $
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