-Joe wants to achieve the highest position possible with the XYZ Co.During the interview,he tells them he is capable of performing many difficult tasks.The company feels there is a 20% chance he is lying.Given the payoff matrix in the above figure,what job level will the company offer to Joe? Will he accept this offer?
A) Firm offers a demanding job and Joe accepts the offer.
B) Firm offers an undemanding job and Joe accepts the offer.
C) Firm offers an undemanding job and Joe refuses the offer.
D) Firm offers a demanding job and Joe refuses the offer.

Question

-Joe wants to achieve the highest position possible with the XYZ Co.During the interview,he tells them he is capable of performing many difficult tasks.The company feels there is a 20% chance he is lying.Given the payoff matrix in the above figure,what job level will the company offer to Joe? Will he accept this offer?
A) Firm offers a demanding job and Joe accepts the offer. 
B) Firm offers an undemanding job and Joe accepts the offer. 
C) Firm offers an undemanding job and Joe refuses the offer. 
D) Firm offers a demanding job and Joe refuses the offer.

Quizplus · Accepted Answer

Without the specific payoff matrix, the general principle in decision-making under uncertainty suggests that a company might offer a demanding job if the potential payoff of Joe being truthful outweighs the risk of him lying. Given that there's an 80% chance Joe is truthful (100% - 20% chance of lying), the company might opt to offer him a demanding job, assuming the benefits of him being truthful and capable outweigh the risks. Joe, confident in his abilities, would accept this offer, aiming for the highest position possible.

-Joe Wants to Achieve the Highest Position Possible with the XYZ