Question

The following probability distributions of job satisfaction scores for a sample of information systems (IS) senior executives and middle managers range from a low of 1 (very dissatisfied) to a high of 5 (very satisfied).

Job Satisfaction Score Probability
IS Senior Executives IS Middle Managers
1 0.06 0.04
2 0.09 0.10
3 0.03 0.13
4 0.42 0.45
5 0.40 0.28
(a) What is the expected value of the job satisfaction score for senior executives?
(b) What is the expected value of the job satisfaction score for middle managers (to 2 decimals)?

Answer 1

a) The expected value of the job satisfaction score for senior executives is:

= 4.01

b) The expected value of the job satisfaction score for middle managers is:

= 3.83

Explanation:

a) Data and Calculations:

Job Satisfaction Probability

Score

IS Senior Executives IS Middle Managers

1 0.06 0.04

2 0.09 0.10

3 0.03 0.13

4 0.42 0.45

5 0.40 0.28

Low of 1 = very dissatisfied

High of 5 = very satisfied

Job Satisfaction IS Senior Executives IS Middle Managers

Score Probability Expected Value Probability Expected Value

1 0.06 0.06 (1 * 0.06) 0.04 0.04 (1 * 0.04)

2 0.09 0.18 (2 * 0.09) 0.10 0.20 (2 * 0.10)

3 0.03 0.09 (3 * 0.03) 0.13 0.39 (3 * 0.13)

4 0.42 1.68 (4 * 0.42) 0.45 1.80 (4 * 0.45)

5 0.40 2 (5 * 0.40) 0.28 1.40 (5 * 0.28)

Expected value 4.01 3.83