The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level emp
1 answer:
You might be interested in
Answer:
The level of wages that maximize tge profit is $61.257
And the correspond value for the profit is:
Explanation:
For this case we have the following function:
Where x represent the daily wages paid , and p(x) the profit, the objective is maximize this function, and in order to do this the first step is derivate the function respect to x and we got this:
As we can see we have a quadratic equation now we need to set up equal the derivate obtained to 0 and then solve for the critical points, like this:
We can use the quadratic formula given by:
And for this case a=0.003 , b=-1 , c =50
Replacing this we got :
And we got:
Now we need to find the second derivate, like this:
And we can replace the values obtained:
So then 61.257 is a maximum.
So then 272.076 is a minimum.
So then the level of wages that maximize tge profit is $61.257
And the correspond value for the profit is:
Answer:
4.53%
Explanation:
Data provided in the question:
Expected return = ∑ (Return × probability)
Thus,
Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))
= 12.98%
Now,
Probability Return Probability × (Return-Expected Return)²
0.06 22 0.06 × (22% - 12.98%)² = 4.8816
0.92 13 0.92 × (13% - 12.98%)² = 0.000368
0.02 -15 0.02 × (-15% - 12.98%)² = 5.657608
========================================================
Total = 20.5396%
Standard deviation =
= √(20.5396)
= 4.53%