MC Qu 02 Buchanan Corp forecasts the following payoffs from a project Buchanan Corp forecasts the following payoffs from a project Outcome Probability of Outcome Assumptions $1,400 20 pessimistic $3,900 60 moderately successful $5,000 20 optimistic What is the expected value of the outcomes $3,870 $3,620 $3,433 $3,900

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MC Qu. 02 Buchanan Corp. forecasts the following payoffs from a project... Buchanan Corp. forecasts the following payoffs from a project: Outcome Probability of Outcome

MC Qu. 02 Buchanan Corp. forecasts the following payoffs from a project...

Buchanan Corp. forecasts the following payoffs from a project:

Outcome	Probability of Outcome	Assumptions
$1,400	20%	pessimistic
$3,900	60%	moderately successful
$5,000	20%	optimistic

What is the expected value of the outcomes?

$3,870

$3,620

$3,433

$3,900

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