A business analyst identifies three possible demand levels for the new service they are considering for the new year.In addition to the levels of demand,the analyst estimates the likelihood of occurrence for each of these levels of demand.If he calculates the expected value of demand he should expect that the calculated value matches one of the three levels he originally identified.

Question

Quizplus · Accepted Answer

The expected value of demand is a weighted average of the three possible demand levels, based on their respective probabilities of occurrence. Therefore, it is possible that the calculated expected value does not match any of the three levels originally identified by the analyst.

A Business Analyst Identifies Three Possible Demand Levels for the New