Pam is an employee at a jewelry kiosk in a mall. If Pam works hard, there is a 75% probability that jewelry profits will equal $400 a day and a 25% probability that jewelry profits will equal $200 a day. If Pam shirks, there is a 25% probability that jewelry profits will equal $400 a day and a 75% probability that jewelry profits will equal $200 a day. Suppose Pam is paid 50% of the daily jewelry profits. What is Pam’s expected gain from working hard?

Answer:175$Step-by-step explanation:Given that Pam  is an employee at a jewelry kiosk in a mall. If Pam works hard, there is a 75% probability that jewelry profits will equal $400 a day and a 25% probability that jewelry profits will equal $200 a day. If Pam shirks, there is a 25% probability that jewelry profits will equal $400 a day and a 75% probability that jewelry profits will equal $200 a day. Since Pam works hardexpected value of profit for the kiosk = [tex]400(0.75)+200(0.25)\\=350[/tex]From this value, 50% would be given to PamHence expected gain for Pam for working hard= [tex]0.5(350)\\=175[/tex]175 $