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Business Finance – Management Assignment 3

Assignment Details attached. 

Assignment

1. Review the Background Information:

Following the passage of the Tax Cuts and Jobs Act of 2017 by the U.S. Congress, several large U.S. corporations announced employee bonuses and other incentives as a gesture of goodwill, intending to share the financial benefits from corporate tax cuts with their employees.

In early 2018, United Airlines introduced a lottery system for employee rewards, replacing their traditional annual bonus program. Previously, the average annual bonus was valued at $2,500 per employee. However, this new system quickly
 backfired, leading to significant backlash and public embarrassment for United’s top executives. 

2. Review the Problem Statement:

If you were to conduct your dissertation on this topic, your problem statement would likely focus on United employees’ perceptions of replacing annual bonuses (a guaranteed outcome) with lottery-based bonuses (a risk-based outcome). You would also examine the apparent disconnect between employee perceptions and the expectations of United’s top management.

3. Review the Purpose Statement:

Now, assume you have developed the following purpose statement for your dissertation:

“This research aims to investigate the reasons behind the failure of United Airlines’ employee lottery system as a compensation strategy. By examining the disconnect between the goals of top management and the expectations of employees, this study seeks to contribute to a deeper understanding of the factors that influence employees’ perceptions of risk in lotteries, as well as how these perceptions vary based on socio-economic and demographic factors.”

4. Writing Research Questions and Hypotheses:

· Develop at least two research questions for this study. 

· These questions should align with the purpose statement and explore whether the failure of United’s bonus system was due to differences in employee attitudes toward risk. 

· For example, you may consider the findings from the article “From Risk-Seeking to Risk-Averse: The Development of Economic Risk Preference from Childhood to Adulthood” by
 Paulsen et al. (2012), which explores how factors like age influence risk preferences.

· Supporting resource: How to write a research question video?




· After formulating your research questions, create at least three research hypotheses associated with these questions. 

· At least one of the hypotheses must be directional. 

· Assume that you will use a variable called “risk tolerance” to measure attitudes toward risk, where higher values indicate a greater appetite for risk.

· Supporting Resource: How to write a hypothesis:

·
Supporting Resource: A Practical Guide to Writing Quantitative and Qualitative Research Questions:

5. In a 600–900 words paper, complete the following:

1. Introductory Criteria

1. Provide this study with a title.

2. Restate the background information (provided above).

2. Problem and Purpose Summary

1. Restate the problem statement (provided above).

2. Restate the purpose statement (provided above). 

3. Formulate at least two research questions for this study (see guidelines above).

4. Create at least three hypotheses, be sure this is directional (see guidelines above).

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