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Consider the Salary of Mary Sue Nelson,a Sales Agent for Plain

Question 27

Multiple Choice

Consider the salary of Mary Sue Nelson,a sales agent for Plain Truth Advertising.Her wage package is ,where Q is her dollar volume of sales.Her productivity is ,where e denotes her hours of effort and µ is a random variable with mean 0.She has an effort cost of C = e2.Under this contract,the expected value of her total wages will be:


A) $200.00.
B) $1,000.00.
C) $3,060.00.
D) $4,200.00.

Correct Answer:

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