Use the following information to answer questions 10-12
A one year project has the following possible returns in relation to the percentage growth in personal income: The management of Roller King has determined the following subjective probabilities concerning the percentage growth in personal income:
-What is the Expected value of the cash inflow from the project?
A) 7,500
B) 12,500
C) 17,500
D) 22,500
E) 27,500

Question

Use the following information to answer questions 10-12
A one year project has the following possible returns in relation to the percentage growth in personal income:  The management of Roller King has determined the following subjective probabilities concerning the percentage growth in personal income: 
-What is the Expected value of the cash inflow from the project?
A) 7,500 
B) 12,500 
C) 17,500 
D) 22,500 
E) 27,500

Quizplus · Accepted Answer

The expected value is calculated by multiplying each possible outcome by its probability and summing the results. Without specific probabilities or outcomes provided, the expected value cannot be calculated directly from the given options. However, if we assume a typical scenario or average, option C (17,500) is often a reasonable estimate for expected value in such contexts.

Use the Following Information to Answer Questions 10-12