Mathematics, 21.11.2019 06:31, shartman22
Based on grossman and hart (1983). a salesperson for fuller brush has three options: (1) quit, (2) put forth a low level of effort, or (3) put forth a high level of effort. suppose for simplicity that each salesperson will sell $0, $5000, or $50,000 worth of brushes. the probability of each sales amount depends on the effort level as described in the file p07_71.xlsx. if a salesperson is paid w dollars, he or she regards this as a "benefit" of w1y2 units. in addition, low effort costs the salesperson 0 benefit units, whereas high effort costs 50 benefit units. if a salesperson were to quit fuller and work elsewhere, he or she could earn a benefit of 20 units. fuller wants all salespeople to put forth a high level of effort. the question is how to minimize the cost of encouraging them to do so. the company cannot observe the level of effort put forth by a salesperson, but it can observe the size of his or her sales. thus, the wage paid to the salesperson is completely determined by the size of the sale. this means that fuller must determine w0, the wage paid for sales of $0; w5000, the wage paid for sales of $5000; and w50,000, the wage paid for sales of $50,000. these wages must be set so that the salespeople value the expected benefit from high effort more than quitting and more than low effort. determine how to minimize the expected cost of ensuring that all salespeople put forth high effort. (this problem is an example of agency theory.)
Answers: 3
Mathematics, 21.06.2019 13:30, sarahsteelman
Rose drew a regression line for this paired data set. her line passed through (1,β2) and (3,β5) . what is the equation of rose's regression line?
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Mathematics, 21.06.2019 17:30, Hilljos018
The length of triangle base is 26. a line, which is parallel to the base divides the triangle into two equal area parts. find the length of the segment between triangle legs.
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Mathematics, 21.06.2019 20:00, ellemarshall13
15 there is a line that includes the point 0,10 and has a slope of 7/4. what is itβs equation in slope intercept form
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Based on grossman and hart (1983). a salesperson for fuller brush has three options: (1) quit, (2)...
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