suppose there are two types of people: high-ability and low-ability. a particular diploma costs a high-ability person $8,000 and costs a low-ability person $20,000. firms wish to use education as a screening device where they intend to pay $25,000 to workers without a diploma and $k to those with a diploma. in what range must k be to make this an effective screening device?

Question

17-12-2022
Business

contestada

suppose there are two types of people: high-ability and low-ability. a particular diploma costs a high-ability person $8,000 and costs a low-ability person $20,000. firms wish to use education as a screening device where they intend to pay $25,000 to workers without a diploma and $k to those with a diploma. in what range must k be to make this an effective screening device?

Respuesta :

Otras preguntas

Which type of land listed below means “suitable for farming”? A. marginal B. arable C. arid D. semiarid Please select the best answer from the choices provided

What is the major political party that is identified as "liberal" called? A: Democratic Party B: Republican Party C: Shopping Party

I’m looking for x can someone help me

Andrea collected data for a school project, but accidentally spilled her coffee on her page. She knows that the values represented a linear function. For this f

A painter uses 1.2 liters of the paint to cover 1 meter squared of the wall.How many square meters he can cover with 12 liters of paintI need the answer quick

which word or phase signals the passage of time

Many bodies of water in this region are very important for transportation. This is due to the fact that this region is the world's largest producer of A oil B f

What is unique about the cells that are created at the end of meiosis II? O They contain half the genetic material of their mother cells, and they become gamete

Provide the information each Age of Reason thinker contributed to his time. 1. John Locke 2. Jean-Jacques Rousseau 3. Isaac Newton 4. Baron de Montesquieu 5. Co

Tundexi Tundexi · Answer 1 · 2022-12-23T12:18:17+01:00

The range that k must be to make this an effective screening device is "33000<=K<=45000".

What does range mean?

In statistic, range of a data, refers to difference between the largest and smallest values. Range is often the result of subtracting the sample maximum and minimum which is expressed in the same units as the data.

It is also size of the smallest interval which contains all the data and provides an indication of statistical dispersion. As its depends on two of observations, it is most useful in representing the dispersion of small data sets.

High-ability range:

= 8000 + 25000

= 33000

Low-ability range:

= 20000 + 25000

= 45000.