Yasmine Believes That Attractive People Make More Money Because Among

question 33

Essay

Yasmine believes that attractive people make more money because among her four friends who work at a local restaurant,the most attractive of the four makes the most in tips.A study by Judge,Hurst,and Simon (2009)found that attractive people make more money.Provide two reasons why Yasmine should be more convinced about the relationship between attractiveness and income by the Judge,Hurst,and Simon paper than by her personal experience.

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Definitions:

Right to Buy

An option giving the holder the ability to purchase an asset at a predetermined price within a specified timeframe.

Employee Stock Options

A benefit offered by companies to their employees, giving them the right but not the obligation to buy the company's stock at a predetermined price during a specified period.

Intrinsic Value

The inherent, actual value of an asset, independent of its market value.

Underwater

A situation where the market value of an asset is less than the amount owed on it, often used in reference to mortgages.