You Have Two Career Options

question 112

Essay

You have two career options.You can work for someone else for $50,000 a year,or,you can run your own business,with an annual revenue of $100,000,and explicit costs of $40,000 annually.Explain which career option a profit-maximizer would select and why.

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Definitions:

Minitab Output

The resultant data and graphs produced by Minitab, a statistical analysis software, after performing specified analyses.

Coefficient of Determination

A statistical measure, often denoted R², that represents the proportion of variance in the dependent variable predictable from the independent variable(s).

Coefficient of Correlation

A measure that indicates the extent to which two variables change together. If the value is close to 1 or -1, it indicates a strong relationship between the variables.

Random Sample

A subset of a population selected in such a manner that every individual has an equal chance of being chosen.