You wish to hire Trump J to manage your Alberta operations for your company. The

profits from the operations depend partially on how hard Trump J works.

Probabilities

Profit=5000 profit=60000

Lazy 70% 30%

Hardworker 20% 80%

If TrumpJ is lazy, he will surf the Internet all day and he views this as a zero cost

opportunity. However, Trump views working hard as a "personal cost" valued at $1000.

What fixed percentage of profits should you offer Trump J for him to work hard? Assume

Trump J only cares about his expected payment less any "personal cost.