Lesson 6.11: 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 job. SHOW ALL WORK!

A) Find the mathematical expectation of the dollar amount of his raise at his current job.

B) Based only on the
mathematical expectation found (monetary earnings), should Bob stay at his
current job or accept the new job? Explain your reasoning.