Consider the Salary of Mary Sue Nelson, a Sales Agent

question 29

Multiple Choice

Consider the salary of Mary Sue Nelson, a sales agent for Plain Truth Advertising. Her weekly wage package is W = 1,000 + .4Q, where Q is her dollar volume of sales. Her productivity is Q = 200e + , where e denotes her hours of effort and , is a random variable with mean 0. If Mary Sue works an additional hour, the expected value of her wages rises by:

• A) $0.00.
• B) $80.00.
• C) $200.00.
• D) $1,000.00.

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