How to Invest $1,000 Essay Example | Topics and Well Written Essays - 500 words

How to Invest $1,000 - Essay ExampleThis change may be an increase or decrease. If it increases, it may exceed the amount of EMV.However, if the probabilities are not 50/50, for instance 40/60 or 60/40, the EMV changes. Therefore to summarize the analysis, there are two variables which may affect Jims decision to move. These include the probabilities of the adventure of getting a higher paid job and the chance of leading to a lower paying job and the current salary (Jones, 1999).Jims decision theoretically depends on the amount of EMV compared to his current salary. Judging upon the changes in the variables which may take effect, both the options of staying in his current job and moving may be a good alternative.If the expected value or EMV of the option of moving is greater than his current salary, then it would probably best for Jim to take the risk and move. In the contrary, if the EMV of moving is less than his current salary, then the option of staying in his current job wo uld be better. Still, his decision must involve a comprehensive analysis of the probabilities of getting a higher or a lower paying job.