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At Midterm, a College Determines That 300 of Its Students

question 14

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At midterm, a college determines that 300 of its students are at risk for suspension this semester. Its tutoring center argues that, with a series of targeted emails encouraging students to come in for help, it can promise to certainly save 100 of those students from suspension. However, an external firm approaches the college with an offer to start a new program, with a 1/3 chance of preventing all 300 students from being suspended (and a 2/3 chance of saving none of these students) . Under which circumstances is the college most likely to hire the external firm?


Definitions:

American Wage

Refers to the average compensation, including salaries and benefits, received by workers in the United States.

Immigration Effects

The impact of immigration on the economy, labor markets, and society in general.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, leading to a balance without excess supply or demand in the labor market.

Employment Level

A measure of the number of people in a workforce who are currently employed.

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