Question: The local operations manager for IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code.

# of workers Low Compliance Medium compliance High compliance

1 50 50 50

2 100 60 20

3 150 70 -10

If the local operations manager for the IRS thinks that chances of low, medium, and high compliance are 20%, 30% and 50% respectively, what are the expected net revenues for that number of workers he will decide to hire? (expected value criterion)

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