A project has the following projected outcomes in dollars 25

A project has the following projected outcomes in dollars: $250, $340 and $500. The probabilities of their outcomes are 35%, 45% and 25% respectively. What is the expected value of these outcomes?

A) 362.5

B) $370

C) $350

D) Cannot be calculated from data provided

EXPECTED VALUE = SUMMATORY ( OUTCOMES IN DOLLARS * PROBABILITY RESCPECTIVELY)

EXPECTED VALUE = 250*0.35 + 340*0.45 +500*0.25

EXPECTED VALUE = 87.5 + 153 + 125

EXPECTED VALUE = 365.5

A project has the following projected outcomes in dollars: $250, $340 and $500. The probabilities of their outcomes are 35%, 45% and 25% respectively. What is t

A project has the following projected outcomes in dollars 25

Solution

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