Mel Is Thinking of Going on a Cruise

question 136

Multiple Choice

Mel is thinking of going on a cruise.Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50.According to a very reliable source,the probability of nice weather is 60% and the probability of bad weather is 40%.Trip insurance is sometimes available.If purchased,it allows travelers to delay the cruise until the weather is nice.
A gamble that offers a 1% chance of winning $699.93 and a 99% chance of losing $7.07 would be classified as a(n)

• A)better than fair gamble.
• B)gamble that only a risk-seeker would take.
• C)fair gamble.
• D)unfair gamble.

Distinguish between individual- and group-level pay performance systems.

Analyze the role of unions and organizational considerations in compensation planning.

Assess the suitability of different pay plans based on organizational goals and employee roles.

Understand the implications of gain-sharing and goal-sharing programs.