The weighted average of all possible outcomes of a project, with the probabilities of the outcomes used as weights, is known as the:
A) variance.
B) standard deviation.
C) expected value.
D) coefficient of variation.

Question

Quizplus · Accepted Answer

The expected value is the weighted average of all possible outcomes, which takes into account the probabilities of each outcome occurring. The variance and standard deviation measure the spread of the data, but do not take into account the probabilities of each outcome. The coefficient of variation is a measure of relative variability, calculated as the standard deviation divided by the mean, and is not directly related to the probabilities of outcomes in a project.

The Weighted Average of All Possible Outcomes of a Project