Solution-Expected profit from a new hire chosen

Expected profit from a new hire chosen

Assignment Help Business Economics

Reference no: EM131439861

1). Assume that there are two types of applicants: Blues and Greens. Blues are more productive than Greens, so that Blue output is $150,000 in output per year and Green output is $85,000 in output per year. Within the applicant pool, 50%are Blues and 50% are Greens. The firm pays $50,000 per year in wages to those candidates it hires.

a. What is the expected profit from a new hire chosen at random from the applicant pool? Limit your analysis assuming one year of employment.

2). Using the information from Question 1 (above), further assume that a screening device with an accuracy of 75% is available at a cost of $10,000 per candidate.

2A). Should the firm use the screening device?

B). Why or why not?

Reference no: EM131439861

Questions Cloud

What is the market clearing price : Assume that Lexar and Corsair act as perfectly competitive firms and that Chinesegoods flow freely into the United States. Draw the aggregate (e.g. including all firms)supply curve for this industry in the space below. What is the market clearing ..

What is linear optimization model : A business student has $2,500 available from a summer job and has identified three potential stocks in which to invest. The cost per share and expected return over the next 2 years is given in the table.

What is the expected net revenue of candidate a : 1). What is the expected net revenue of Candidate A? 2). What is the expected net revenue of Candidate B? 3). Based on the expected net revenue calculations, which candidate do you hire and why?

Conduct a working capital management analysis : Conduct a working capital management analysis of your chosen company and compare it to the industry. Specifically, we will work with the Cash Conversion Cyclefor this analysis.

Expected profit from a new hire chosen : What is the expected profit from a new hire chosen at random from the applicant pool? Limit your analysis assuming one year of employment.

Explain what you have learned about balanced literacy : EDU 371- Describe what you have learned about balanced literacy. Pretend you will be presenting this workshop to brand new teachers from another country.

Choose a primary source from the list provided : HIST 1306 : Choose a primary source from the list provided(Under Course Content, choose (1) from Primary Sources Chapters 21-28). A primary source is "raw history," i.e., a document or object produced during the historical period in question. The ..

Managerial economics in meeting organization goals : Consider the role of managerial economics in meeting organization goals. How can the expertise of this field promote the broader goals of a company?

Strategic scope of the horizontal acquisition : In this case study you are to analyze the strategic scope of the horizontal acquisition by Verizon Communications (hereafter referred to as Verizon) of Verizon Wireless from Vodafone. Discuss whether or not this deal improves Verizon’s sustainability..

User Account

All Pages

Expected profit from a new hire chosen

Reference no: EM131439861

Reference no: EM131439861

Questions Cloud

Reviews

Write a Review

Business Economics Questions & Answers

Economics assignment

Demand and supply curves

Long-run perfectly competitive equilibrium for the firm

Supply and demand diagrams

Case study: fisher-price toys

Draw the production possibility curve

Tax revenue

Maximize total welfare

Difference between the cv and the ev

Depict von neumann-morgenstern utility index u in a diagram

What is the market solution

Calculate gross national product and net national product

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT