Dwayne and Wayne are identical twins and are offered the same position(s). The j
ID: 1225418 • Letter: D
Question
Dwayne and Wayne are identical twins and are offered the same position(s). The job is 100% commision. The most any salesperson has made is $500,000, while others have made no sales, and thus, no salary. Dwayne accepts the position, but Wayne turns it down. Which of the following is true?
Multiple Choice
a) Dwayne is more of a risk-taker than Wayne
b) Dwayne's subjective probablility assignment of a salary expectation is more favorable than Wayne's
c) Both A and B
d) Not enough information
a) Dwayne is more of a risk-taker than Wayne
b) Dwayne's subjective probablility assignment of a salary expectation is more favorable than Wayne's
c) Both A and B
d) Not enough information
Explanation / Answer
Option C.
Any option involves risk because it has an imvestment and it could be time, money or efforts. It has been noted that some have made no sales at all and received no salary because it is totally commission based job. Dwayne has demonstrated risk taking behaviour while accepting the job.
Also, Wayne and Dwayne are twins and offred same job. It is presumable that to the extent they will have identical thinking al though it is not necessary but Dwayne has accepted the job while Wayne rejected it. It shows that Dwayne has higher subjective probability towards the job.
Subjective probability is something which involves no mathematical calculations and differs from person to person as it is based on personal experiences, beliefs and judgment. These are the factors considered while expecting a specific event likely to occur.
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