A Company Bids on Two Contracts B) C) $$\begin{array} { l | c c c } \text { Profit } & \$ 0 & \$ 20,000 & \$ 50,000 \\\hline \text { P(Profit) } & 0.2 & 0.6 & 0.2\end{array}$$

question 70

Multiple Choice

A company bids on two contracts.It anticipates a profit of $50,000 if it gets the larger contract and a profit of $20,000 if it gets the smaller contract.It estimates that there's a 20% chance of winning the larger contract and a 60% chance of winning the smaller contract. Create a probability model for the company's profit.Assume that the contracts will be awarded independently.

• A) \[\begin{array} { l | l c c c }
• \text { Profit } & \$ 0 & \$ 20,000 & \$ 50,000 & \$ 70,000 \\
• \hline \text { P(Profit) } & 0.32 & 0.48 & 0.08 & 0.12
• \end{array}\]
• B) \[\begin{array} { l | l c c c }
• \text { Profit } & \$ 0 & \$ 20,000 & \$ 50,000 & \$ 70,000 \\
• \hline \text { P(Profit) } & 0.08 & 0.6 & 0.2 & 0.12
• \end{array}\]
• C) \[\begin{array} { l | c c c }
• \text { Profit } & \$ 0 & \$ 20,000 & \$ 50,000 \\
• \hline \text { P(Profit) } & 0.2 & 0.6 & 0.2
• \end{array}\]
• D) \[\begin{array} { l | l c c c }
• \text { Profit } & \$ 0 & \$ 20,000 & \$ 50,000 & \$ 70,000 \\
• \hline \text { P(Profit) } & 0.32 & 0.48 & 0.08 & 0.8
• \end{array}\]
• E) \[\begin{array} { l | c c c }
• \text { Profit } & \$ 0 & \$ 20,000 & \$ 50,000 \\
• \hline \text { P(Profit) } & 0.32 & 0.48 & 0.08
• \end{array}\]

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Definitions:

Road Map

A detailed plan or strategy intended to achieve specific goals or objectives, often outlining key steps and milestones.

Effective Compensation

Compensation strategies that are fair, competitive, and aligned with the organization's goals, thereby motivating employees.

Compensation Mix

The combination of direct compensation (like salary and wages) and indirect compensation (such as benefits) that an employee receives.

Reward Strategy

A plan designed by an organization to recognize and provide incentives to employees for their work and achievements through financial and non-financial means.