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Your current salary is a fixed sum of $129,600 per year. You have an offer for another job. The salary there is a flat $52,900
Your current salary is a fixed sum of $129,600 per year. You have an offer for another job. The salary there is a flat $52,900 plus a chance to earn an additional $149,600 if the company does well. Assume that your utility from income can be expressed as: For example, at an income level of $100, your utility level is 10; your utility level from the current salary of $129,600 is 360. The probability of success for the company must be equal to at least what percent to induce you to take this job
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