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e-lub [12.9K]
3 years ago
9

Eric works at an electronics store in a mall. Eric doesn't like to work hard, and it costs him $100 to do so. Eric's employer ca

nnot observe whether Eric works hard. If Eric works hard, there is a 90% probability that electronics goods profits will equal $400 a day and a 10% probability that electronics goods profits will equal $100 a day. If Eric shirks, there is a 90% probability that electronics goods profits will equal $100 a day and a 10% probability that electronics goods profits will equal $400 a day. Suppose Eric is paid $200 if electronics goods profits are $400 a day and $50 if electronics goods profits are $100 a day. Eric will _____ because the net gain of _____ from shirking is _____ than the net gain of _____ from working hard.
Business
1 answer:
SCORPION-xisa [38]3 years ago
7 0

Answer: work hard; $65; less; $85

Explanation:

The following can be deduced from the question:

The Expected profit from working hard will be:

= (90% × $200) + (10% × $50)

= (0.9 × $200) + (0.1 × $50)

= $180 + $5

= $185

Then, the profit will be the difference between revenue and coat which will be:

= $185 - $100

= $85

Then, the expected profit from shirking will be:

= (90% × $50) + (10% × $200)

= (0.90 × $50) + (0.10 × $200)

= $45 + $20

= $65

Then, the profit will be:

= $65 - $0

= $65

Eric will (work hard) because the net gain of ($65) from shirking is (less) than the net gain of ($85) from working hard.

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Freddy offers to supply water bottles to Jerry’s Gym at a cost of $40a case. The signed contract says that Jerry’s Gym will buy
atroni [7]

Answer:

-jerry is entitled to monetary damages compensations due to a contract breach.

-Freddy has to pay Jerry $90

Explanation:

the damage that the gym is entitled to would be that of a contract breach. Freddy wanted to earn more money so he breached the contract. Now given that Jerry had to go with another supplier of water at a greater cost of 50 dollars for 9 months, just to satisfy his requirements. Freddy has to pay him monetary damages for this breach in contract.  he has to pay the difference that exists between the price in the contract they had and what jerry now has to pay due to the breach. The difference is 10 dollars, which is to be paid every month for 9 months

= (50 - 40)*9

= 10 * 9 = $90

4 0
3 years ago
Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt.
posledela

Answer:

Earnings per share (EPS) = (net income - preferred dividends) / average number of outstanding shares

EPS for all equity plan:

($80,000 x 60%) / 18,000 = $2.67 per share

EPS for Plan I:

[($80,000 - $5,000) x 60%] / 12,000 = $3.75 per share

EPS for Plan II:

[($80,000 - $7,750) x 60%] / 8,700 = $4.98 per share

3 0
3 years ago
Ryan hates shopping for groceries. However, after he finishes his shopping, he is happy that he has groceries in the house. Whic
sladkih [1.3K]

Answer:

d. Utilitarian shopping value

Explanation:

Ryan does not love the process of shopping, however, he needs and respects its outcome. Therefore, his outlook on shopping is utilitarian and he sees purely <u>utilitarian shopping value</u> in the experience.

He does not go for a shopping spree, that is typical with consumer that look at shopping with a hedonistic value.

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3 years ago
A professor decides to run an experiment to measure the effect of time pressure on final exam scores. He gives each of the 400 s
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Answer:

Kindly check explanation

Explanation:

The regression model :

Y; = Bo + BiX; + ui

ui in the regression model represents other underlying factors aside the model variables which may affect the final exam score of student. These factor will almost likely vary from student to student and may include factors such as ; rate of assimilation, natural brilliance, psychological factors and so on.

E(ui|X) = 0 ; because ui and Xi are independent.

The estimated model is Y; = 49+0.24X;.

i. Based on the estimated model, predict the average score of students given 90 minutes.

X = 90 minutes

Y; = 49+0.24(90)

Y = 70.6

Repeat for 120 minutes and 150 minutes.

X = 120 minutes

Y; = 49+0.24(120)

Y = 77.8

X = 150 minutes

Y; = 49+0.24(150)

Y = 85

ii. Compute the average predicted gain in score for a student who is given an additional 10 minutes on the exam.

Gain in score for student Given additional 10 minutes :

Gain in score for X = 10

0.24X

= 0.24(10)

= 2.4

5 0
3 years ago
Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers?
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What could reduce potential conflicts of interest is the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions

Let understand that Shareholders are basically the “owners” of the company and they are entitled to dividend payments and stock price appreciation because they bought shares.

Let understand that Managers are the people or officers who manage the company (& shares) on a daily basis.

  • Now, there can be conflicts of interest between stockholders and managers because of disagreement on what should be and not.

  • The major actions that can help to reduce this conflict are covenants in bond agreements. By reason of this, the manager of limited on what to do with the funds of the shareholders and can be penalized if found defaulted by law.

Learn more about covenants in bond agreements

<em>brainly.com/question/15735678</em>

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