Suppose you have hired a new worker, unfortunately you do not know ifthe worker is a shirker or a hard
Suppose you have hired a new worker, unfortunately you do not know ifthe worker is a shirker or a hard
worker. Suppose working hard raises
the probability of making a sale from 40% to 80% (thus raises the
probability of making a commision C by the same percentage). If the
cost of working harder is $200,what commission C should you offer the
worker to provide an incentive to work hard. ANSWER: .8C-200 >
.4C or C > $500
Question please show how is C greater than$500. I get that .8c is greater than .4 but I thought .8 x 200 = 160+200=360