Why manager of a coporate division faces the possibility

Reference no: EM13225048

The manager of a coporate division faces the possibility of an audit every year. She prefers to spend time preparing if she will be audited; other wise, she would prefer to invest her time elsewhere. The auditor, who gets recognized for uncovering problems, prefers to audit unprepared clients. If the payers match their actions (i.e. the manager prepares and the auditor audits, or the manager doesn't prepare and the auditor doesn't audit), the manager wins with a payoff of 20, and the auditor loses with a payoff of -20. If the actions don't match, the auditor iwns with a payoff of 20, and the manager loses with a payoff of -20.

Reference no: EM13225048

Questions Cloud

Job description for the benefits manager position : You suggest grouping the front-line administrative jobs in a separate job family called office support. The other job families that will be evaluated are operations and HR.

Explain possible ions are present in the solution sample : The remaining solid residue dissolved when 6 M NH3 was added but no precipitate was formed. The solution was then acidified with 6M HCl and a white precipitate formed. Based on this info

What would be new cost per unit of production : suppose that increase in input price does not occur but instead the productivity increases by 100 %. What would be new cost per unit of production What effect would it have on agg supply curve?and the price level andreal output

What happens to the rental prices in the suburbs : A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..

Why manager of a coporate division faces the possibility : The manager of a coporate division faces the possibility of an audit every year. She prefers to spend time preparing if she will be audited; other wise, she would prefer to invest her time elsewhere. The auditor, who gets recognized for uncovering..

Calculate the standard deviation of the return on security : a. Calculate the percentage return on the security if the payoff to the security in one year is $1,000, $1,500, $2,000, or $2,500. b. If each of the outcomes in part a is equally likely, calculate the expected return on the security. c. Calculate th..

Compute the cost minimizing combination of labor : Suppose that firm wishes to make produce 100 basketballs every hour. Compute the cost minimizing combination of labor and capital the firm should use. Compute the cost of making 100 basketballs. What is the MRTSLK if K = 25 and L = 100

Determiine what are the benefits and the costs : What are some examples of goods that the U.S. has comparative advantage in producing Take a look at the tag of the shirt/dress/pants you are wearing today. Where was it made Anyone wearing "Made in America" items of clothing today

How does imposing rent controls affect the number of housing : What alternative policy would you propose to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Illustrate the effects on supply and demand from part 1.

User Account

All Pages