The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues (in thousands) will vary with how well taxpayers comply with the new tax code.
$$\begin{array} { c c c c }
\hline \text { \# of Workers } & \begin{array} { c }
\text { Low } \
\text { Compliance }
\end{array} & \begin{array} { c }
\text { Medium } \
\text { Compliance }
\end{array} & \begin{array} { c }
\text { High } \
\text { Compliance }
\end{array} \
\hline 1 & 50 & 50 & 50 \
2 & 100 & 60 & 20 \
3 & 150 & 70 & - 10 \
\hline
\end{array}$$
-If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire?

Question

The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues (in thousands) will vary with how well taxpayers comply with the new tax code.
 $$\begin{array} { c c c c } 
\hline \text { \# of Workers } & \begin{array} { c } 
\text { Low } \
\text { Compliance }
\end{array} & \begin{array} { c } 
\text { Medium } \
\text { Compliance }
\end{array} & \begin{array} { c } 
\text { High } \
\text { Compliance }
\end{array} \
\hline 1 & 50 & 50 & 50 \
2 & 100 & 60 & 20 \
3 & 150 & 70 & - 10 \
\hline
\end{array}$$
-If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire?

Quizplus · Accepted Answer

The Answer of The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues (in thousands) will vary with how well taxpayers comply with the new tax code.
 $$\begin{array} { c c c c } 
\hline \text { \# of Workers } & \begin{array} { c } 
\text { Low } \
\text { Compliance }
\end{array} & \begin{array} { c } 
\text { Medium } \
\text { Compliance }
\end{array} & \begin{array} { c } 
\text { High } \
\text { Compliance }
\end{array} \
\hline 1 & 50 & 50 & 50 \
2 & 100 & 60 & 20 \
3 & 150 & 70 & - 10 \
\hline
\end{array}$$
-If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire?

The Local Operations Manager for the IRS Must Decide Whether