Shayla Is Thinking About Leaving Her Place of Work and Starting

question 10

Multiple Choice

Shayla is thinking about leaving her place of work and starting her own business. If she stays with her company, there is an 80 percent chance that she will remain in her current role earning $50,000 per year and a 20 percent chance that she will receive a promotion and earn $60,000 per year. If she starts her own business, there is a 40 percent chance she'll earn $80,000 per year; a 10 percent chance she'll earn $100,000 per year; and a 50 percent chance she'll earn $20,000 per year. Which of the following statements is true?

• A)Shayla's expected earnings are $2,000 more if she stays with her current company.
• B)If Shayla is risk neutral, she will be indifferent between staying with her current company and starting her own business.
• C)Shayla's expected earnings are $55,000 per year if she stays with her current company.
• D)None of these statements are true.

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Definitions:

Complement System

Collective name for a series of proteins in the blood, some of which act as enzymes and activators, which bind to antibodies and may lead to rupture of a foreign cell.

Plasma Proteins

Proteins in blood plasma that perform a wide range of functions including clotting, defense against pathogens, and transport of substances.

Membrane Attack Complex

A structure formed on the surface of pathogenic bacteria as part of the immune system's response, leading to the lysis of the cells.

Complement

A system of proteins in the blood serum and plasma that enhances the ability of antibodies and phagocytic cells to clear pathogens from an organism.