Question: EXPECTED HOME SALES Sally Leonard, a real estate broker, is relocating in a large metropolitan area where she has received job offers from realty company A and realty company B. The number of houses she expects to sell in a year at each firm and the associated probabilities are shown in the following tables.
The average price of a house in the locale of company A is $308,000, whereas the average price of a house in the locale of company B is $474,000. If Sally will receive a 3% commission on sales at both companies, which job offer should she accept to maximize her expected yearly commission?