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Buchanan Corp. forecasts the following payoffs from a project: Outcome Probability of Outcome Assumptions $900 25% pessimistic $2,200 55% moderately successful $6,200 20% optimistic What
Buchanan Corp. forecasts the following payoffs from a project:
Outcome | Probability of Outcome | Assumptions |
$900 | 25% | pessimistic |
$2,200 | 55% | moderately successful |
$6,200 | 20% | optimistic |
What is the expected value of the outcomes?
$2,925
$2,200
$3,100
$2,675
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