Assume you are a hiring manager selecting between two finalist candidates, Candidate A and Candidate B. The successful candidate will earn an annual salary of $250,000. Candidate A will generate $500,000 in revenue with 85% probability and $300,000 in revenue with 15% probability. Candidate B will generate $500,000 in revenue with 50% probability and $250,000 in revenue with 50% probability.
1). What is the expected net revenue of Candidate A?
2). What is the expected net revenue of Candidate B?
3). Based on the expected net revenue calculations, which candidate do you hire and why?