Business Finance
Calculate the weighted average of the salary for each scenario

Question Description

I don’t know how to handle this Business question and need guidance.

Need assistance in this task- 700-1000 words with references: Budgeting in uncertainty is challenging. The decisions made by budget managers affect the direction and future of every company. Having a thorough understanding of the components of capital budgeting is essential to developing an appropriate budget.

Scenario 1 Salary Probability $36,000 0.30 $41,000 0.60 $43,000 0.10

Scenario 2 Salary Probability $36,000 0.50 $41,000 0.25 $43,000 0.25

Scenario 3 Salary Probability $36,000 0.10 $41,000 0.20 $43,000 0.70

Using the data above, answer the following questions: Calculate the weighted average of the salary for each scenario. Show your work.

Calculate the weighted average of the salary for each scenario that the budget manager would need for a monthly budget. Show your work.

Which scenario produces the lowest salary? Show your work.

Which scenario produces the highest salary? Show your work.

Which scenario produces the salary that is "in the middle"? Show your work.

Which scenario is the most fiscally conservative? Explain your answer.

Which scenario is the least fiscally conservative? Explain your answer.

How does changing the weight impact the cost of the employee to the budget manager? Explain your answer.

Given an environment with high unemployment, which scenario do you think the company should use? Explain your answer.

Given an environment with low unemployment, which scenario do you think the company should use? Explain your answer.


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Final Answer

Boston College

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