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Bob earns $60,000 a year at an accounting firm. Each year, he receives a raise. Bob has determined that the probability that he receives a 10% raise is 0.7, the probability that he earns a 3% raise is 0.2, and the probability that he earns a 2% raise is 0.1.A competing company has offered Bob a similar position for $65,000 a year. Bob wonders if he should take the new job or take his chances with his current jo

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bowmaian000

Answer:

He should keep his job.

Step-by-step explanation:

We know that there is a 70% chance that he willend up getting a 10% raise. A 10% raise will allow him to make 66000 dolllars, which is 1000 more than getting a new job.

There is a 30% chance that he will make about 3,100 dollars less than a new job. However, 30% is much lower than 70%, so this probably wont be the outcome. And over future years, if this remains constant, he will end up still making more money staying wiht his job.

Hope this helps!

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