You wish to hire Ricky to manage your Dallas operations. The profits from the operations depend partially on how hard Ricky works, as follows., Probabilities, , Profits = $10,000 Profits =$50,000, Lazy 60% 40%, Hard worker 20% 80%,,If Ricky is lazy, he will surf the internet all day and he views this as a zero cost opportunity. However, Ricky would view hard working as a “personal cost” valued at $1,000. What fixed percentage of the profits should you offer Ricky? Assume Ricky only cares about his expected payment less any “personal cost”,
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