Understanding Certification Choices for Electricians: A Quiz
School
Arizona State University**We aren't endorsed by this school
Course
ECN 214
Subject
Management
Date
Dec 10, 2024
Pages
1
Uploaded by AdmiralMusicParrot24
Quiz 4 (11/18)Screening – Chapter 9Suppose electricians are of two types: competent and incompetent. Both types can be certified, but certification for incompetent types takes extra time and effort. Competent types must spend Cmonths preparing for certification exams, incompetent ones take twice as long. Certified electricians can earn 100 (thousand dollars) each year. Uncertified electricians can only earn 25. Each type of electrician gets a payoff equal to√S−M, where Sis the salary and Mis the number of months spent getting certified. What is the range of values of C for which a competent electrician will choose to use certification as a signaling device, but an incompetent onewill not?
