A project has the following projected outcomes in dollars: $250, $350, and $500. The probabilities of their outcomes are 25%, 50%, and 25%, respectively. What is the expected value of these outcomes?

Question

Quizplus · Accepted Answer

The expected value is calculated by multiplying each outcome by its probability and then summing these products: (0.25 * $250) + (0.50 * $350) + (0.25 * $500) = $62.50 + $175 + $125 = $362.50.

A Project Has the Following Projected Outcomes in Dollars: $250