Refer to the Information Provided in Figure 17

question 16

Multiple Choice

Refer to the information provided in Figure 17.1 below to answer the question(s) that follow. Figure 17.1
-Refer to Figure 17.1. John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believes that he has a 50-50 chance of earning the bonus. What is the expected value of John's income for each job offer?

• A) $50,000 for the first offer and $80,000 for the second offer
• B) $50,000 for the first offer and $50,000 for the second offer
• C) $50,000 for the first offer and $30,000 for the second offer
• D) $25,000 for the first offer and $50,000 for the second offer

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Definitions:

Household Income

The total amount of money earned by members of a single household, often used to gauge economic status or eligibility for financial assistance programs.

Public Assistance

Governmental programs designed to provide financial aid or services to individuals or families in need.

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The responsibility of teaching, training, or providing educational support, often within a specific profession or subject matter.

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Educational courses for expectant parents focusing on pregnancy, childbirth, newborn care, and parenting, designed to prepare them for the physical and emotional changes ahead.