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Buchanan Corp. forecasts the following payoffs from a project: Outcome Probability of Outcome Assumptions $1,100 20% pessimistic $2,500 55% moderately successful $5,600 25% optimistic What
Buchanan Corp. forecasts the following payoffs from a project:
Outcome | Probability of Outcome | Assumptions |
$1,100 | 20% | pessimistic |
$2,500 | 55% | moderately successful |
$5,600 | 25% | optimistic |
What is the expected value of the outcomes?
$2,995
$3,067
$3,245
$2,500
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