Table A.3 Use the Following to Answer the Questions Below

question 90

Multiple Choice

Table A.3
Use the following to answer the questions below.
In choosing between three new jobs,Joe MBA considers the potential payoffs over the next three years.The following table contains the payoffs,given the speed of promotion in each of the organizations.The probability of fast promotion is 0.6,and the probability of slow promotion is 0.4.

-Use the information in Table A.3 and the expected-value rule.Which statement is TRUE?

• A)The expected value of the consultant job is more than $300,000.
• B)The expected value of the utility analyst job is more than $300,000.
• C)The expected value of the research assistant job is less than $250,000.
• D)The job with the highest expected value is the research assistant.

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Definitions:

Merchandise Inventory

Merchandise inventory represents the goods a company has in stock that are ready to be sold in the normal course of business.

Accounts Payable

Accounts payable are liabilities representing the amounts that a company owes to creditors for purchases or services rendered that have not yet been paid.

Supplies Expense

The cost associated with using up supplies during an accounting period, which is recorded as an expense.

Merchandise Inventory

The total value of a company's goods available for sale to customers, typically recorded as an asset on the balance sheet.