Jeffries Industries is considering investing in a new project. The projected outcomes and their probabilities are as follows:

outcome Probability of outcome. Assumptions

$4,600 . 30% . pessimistic

$7,800 . 45% . moderately sucessful

$13,500 . 25% optimistic

Calculate the expected value of the outcomes.

Select one:

a. $8,265

b. $3,123

c. Cannot be determined. Depends upon which prediction is correct.

d. $7,259

e. $8,633