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

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

A) $5,000
B) $4,000
C) $5,300
D) The forecast is incorrect and must be modified before finding the expected value.