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An employee of a vending concession firm at the Subiaco Oval needs to choose between two options. He can work behind a hamburger counter and receive a fixed sum of $100 per game. Alternatively, he can walk around the stands selling beer and snacks on a commission basis. On this second option, the employee can expect to earn $180 on a good day, $100 on an average day and $70 on a poor day. The probabilities of a good, average and poor day are 0.30, 0.40 and 0.30 respectively.
(a) What would be the expected earnings and the standard deviation in earnings for the employee under the commission option?
(b) Which job should he take and why?
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