A firm is considering two projects,A and B,with the following probability distributions for profit. $$\begin{array} { c c c }
\begin{array} { c }
\text { Prafit } \
\text { (\$1,000s) }
\end{array} & \begin{array} { c }
\text { Praject } A \
\text { Prabability } ( \% )
\end{array} & \begin{array} { c }
\text { Project } B \
\text { Prabability } ( \% )
\end{array} \
\hline \$ 20 & 10 & 10 \
40 & 15 & 15 \
60 & 50 & 25 \
80 & 15 & 40 \
100 & 10 & 10
\end{array}$$ Given the above,what is the expected value of project B (in $1,000s)?
A)$60
B)$65
C)$70
D)$75
E)$80

Question

A firm is considering two projects,A and B,with the following probability distributions for profit. $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Prafit } \
\text { (\$1,000s) }
\end{array} & \begin{array} { c } 
\text { Praject } A \
\text { Prabability } ( \% )
\end{array} & \begin{array} { c } 
\text { Project } B \
\text { Prabability } ( \% )
\end{array} \
\hline \$ 20 & 10 & 10 \
40 & 15 & 15 \
60 & 50 & 25 \
80 & 15 & 40 \
100 & 10 & 10
\end{array}$$ Given the above,what is the expected value of project B (in $1,000s)?
A)$60
B)$65
C)$70
D)$75
E)$80

Quizplus · Accepted Answer

The Answer of A firm is considering two projects,A and B,with the following probability distributions for profit. $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Prafit } \
\text { (\$1,000s) }
\end{array} & \begin{array} { c } 
\text { Praject } A \
\text { Prabability } ( \% )
\end{array} & \begin{array} { c } 
\text { Project } B \
\text { Prabability } ( \% )
\end{array} \
\hline \$ 20 & 10 & 10 \
40 & 15 & 15 \
60 & 50 & 25 \
80 & 15 & 40 \
100 & 10 & 10
\end{array}$$ Given the above,what is the expected value of project B (in $1,000s)?
A)$60
B)$65
C)$70
D)$75
E)$80

A Firm Is Considering Two Projects,A and B,with the Following