A shoe salesman working on commission must decide whether to work hard or shirk.Working hard would increase the probability of a sale from 20% to 70% but would cost him $5.If the average price of shoes is $100,what is the minimum commission rate would induce him to work hard?
A)4%
B)6%
C)8%
D)10%

Question

A shoe salesman working on commission must decide whether to work hard or shirk.Working hard would increase the probability of a sale from 20% to 70% but would cost him $5.If the average price of shoes is $100,what is the minimum commission rate would induce him to work hard?
A)​4%
B)6%
C)8%
D)​10%

Quizplus · Accepted Answer

The Answer of A shoe salesman working on commission must decide whether to work hard or shirk.Working hard would increase the probability of a sale from 20% to 70% but would cost him $5.If the average price of shoes is $100,what is the minimum commission rate would induce him to work hard?
A)​4%
B)6%
C)8%
D)​10%

A Shoe Salesman Working on Commission Must Decide Whether to Work