Buchanan Corp. forecasts the following payoffs from a project: $$\begin{array} { c c l }
\text { Outcome } & \text { Probability of Outcome } & \text { Assumptions } \
\$ 2,000 & 40 \% & \text { pessimistic } \
\$ 4,000 & 60 \% & \text { moderately successful } \
\$ 6,000 & 30 \% & \text { optimistic }
\end{array}$$ What is the expected value of the outcomes?

Question

Buchanan Corp. forecasts the following payoffs from a project: $$\begin{array} { c c l } 
\text { Outcome } & \text { Probability of Outcome } & \text { Assumptions } \
\$ 2,000 & 40 \% & \text { pessimistic } \
\$ 4,000 & 60 \% & \text { moderately successful } \
\$ 6,000 & 30 \% & \text { optimistic }
\end{array}$$ What is the expected value of the outcomes?

Quizplus · Accepted Answer

The Answer of Buchanan Corp. forecasts the following payoffs from a project: $$\begin{array} { c c l } 
\text { Outcome } & \text { Probability of Outcome } & \text { Assumptions } \
\$ 2,000 & 40 \% & \text { pessimistic } \
\$ 4,000 & 60 \% & \text { moderately successful } \
\$ 6,000 & 30 \% & \text { optimistic }
\end{array}$$ What is the expected value of the outcomes?

Buchanan Corp What Is the Expected Value of the Outcomes? A)$5,000 B)$4,000

Buchanan Corp What Is the Expected Value of the Outcomes?
A)$5,000
B)$4,000