-Wendy Works as a Teller at a Bank for a Fixed

question 217

Essay

-Wendy works as a teller at a bank for a fixed salary of $1,800 per month. She is offered a job as a salesperson at which there is a 40 percent chance that she will make $5,000 a month and a 60 percent chance that she will make only $1,000 a month. The figure shows Wendy's utility of wealth curve:
a) What is Wendy's expected income from the offered job?
b) What is Wendy's expected utility from the offered job?
c) Will Wendy accept the offer? Why or why not?
d) What is the minimum fixed salary for which Wendy will continue to work for the bank and not take the sales job?

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Definitions:

Personality Traits

Enduring characteristics that describe an individual’s behavior, thought patterns, and emotions.

Organizational Behaviour

The study of how individuals and groups act within organizations, focusing on improving organizational efficiency, effectiveness, and culture.

Personality Characteristics

Traits that define an individual’s patterns of thought, feeling, and behavior, making up their unique personality.

Trait Activation Theory

Suggests that certain situations or environments can trigger the expression of specific personality traits.