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Company Z is evaluating project R. The profits of project Rare uncertain and dependant on demand. If demand is high then the profit is expected
Company Z is evaluating project R. The profits of project Rare uncertain and dependant on demand. If demand is high then the profit is expected to be 300,000, if it is medium then the profit is expected to be 200,000, but if it is low then a loss of 220,000 is expected. Low demand is twice as likely as either medium or high demand. If Company Z uses expected value to evaluate the project what is the outcome? A -10,000 B 60,000 zero 180,000
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