Question

A project has the following projected outcomes in dollars:______. $210, $340, and $520. The probabilities of their outcomes are 20%, 50%, and 30% respectively. What is the expected value of these outcomes?

Answer 1

Expected value of these outcomes is $368

Step-by-step explanation:

Expected value is the weighted average value of random variable. It is the sum of all the probable outcome.

Expected value can be calculated as follow

Outcomes ________ Probabilities _________ Expected values

$210 _______________ 20% ________________ $42

$340 _______________ 50% ________________ $170

$520 _______________ 30% ________________ $156

Total ____________________________________ $368