The expected value of a project is always the:
A) median value of the project.
B) modal value of the project.
C) standard deviation of the project.
D) weighted average of the outcomes, with probabilities of the outcomes used as weights.

Question

Quizplus · Accepted Answer

The expected value of a project is the weighted average of the outcomes, with probabilities of the outcomes used as weights. This gives a more accurate representation of the potential value of the project than using the median or mode. Standard deviation is a measure of risk, not the expected value.

The Expected Value of a Project Is Always The