The owner of a thriving business wants to open a new office in a distant city. If he can hire someone who will manage the new office honestly, he can afford to pay that person a weekly salary of $2,000 ($1,000 more than the manager would be able to earn elsewhere and still earn an economic profit of $500. The owner's concern is that he will not be able to monitor the manager's behavior and that the manager would therefore be in a position to embezzle money from the business. The owner knows that if the remote office is managed dishonestly, the manager can earn $3,500, which results in an economic loss of $400 per week. (Hint. Construct a decision tree to help you answer the questions below.) a. If the owner believes that all managers are narrowly self-interested income maximizers, will he open the new office? O Yes O No b. Suppose the owner knows that a managerial candidate condemns dishonest behavior, and who would be willing to pay up to $5,000 to avoid the guilt she would feel if she were dishonest. Will the owner open the remote office? O Yes O No

An investor has $5000 to invest in three different accounts. One is low-risk,one is a medium-risk and the third is a high-risk investment. The low-risk account is expected to pay 5.2% interest, the medium-risk investment is expected to pay 6.7% interest and the high-risk investment is espected to pay10.3% interest. Due to her age, the investor is willing to invest twice as much money in the high-risk account as in the low-risk investment. How much money should be invested in each of the accounts to anticipate a return of 8% on the total investment.

The Fore and Aft Marina is located on the Ohio River near Madison, Indiana. Fore and Aft currently operates a docking facility where only one boat at a time can stop for gas and servicing. The manager of the Fore and Aft Marina wants to investigate the possibility of enlarging the docking facility so that two boats can stop for gas and servicing simultaneously. Assume that the arrival rate is 3 boats per hour and that the service rate for each server is 9 boats per hour. (Round your answers to four decimal places.) (a) What is the probability that the boat dock will be idle? (b) What is the average number of boats that will be waiting for service? (c) What is the average time (in hours) a boat will spend waiting for service? h (d) What is the average time (in hours) a boat will spend at the dock? h (e) If customers expect to be able to be in and out of the marina within 10 minutes on average, does this system provide acceptable service? ---Select--- V since the average time a boat will…

Three friends are trying to predict who will make more money at work tomorrow. John works construction: he will make $250 tomorrow unless it rains, in which case he will make $0. Sara works in a restaurant: she will earn $100 if it is sunny, $200 if it is rainy, and $250 if the weather is average. Chris works in a warehouse, and he earns a flat rate of $200 per day, regardless of weather conditions. Suppose there is a 20% chance that tomorrow will be sunny, and 50% chance that the weather will be average, and a 30% chance of rain.    Determine tomorrow’s expected earnings for each of these 3 friends. Compute the standard deviation for Sara’s earnings.  Handwrite the solution

A producer of perishable product offers a wage incentive to drivers of its trucks. A standard delivery takes an average of 30 hours. Drivers are paid at the rate of $20 per hour up to maximum of 40 hours. If the trip requires more than 30 hours, the drivers receive compensation for only 30 hours. There is an incentive for drivers to make the trip in less (but not to much less) than 30 hours. For each hour under 30, the hourly wage increases by $1.25.Determine the function w = f(x) where w equals the hourly wage in dollars and x equals the number of hours required to complete the trip.a) What trip time x will maximize the driver salary for the trip?b) What is the hourly wage associated with this trip?c) What is the maximum salaryd) How does this salary compare with that received for a 20 hours trip?

both sheets are for the same problem.