Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer this question ASAP for thumbs up Business Decision Making You are trying to host a fancy gala for work donations. But there is

Please answer this question ASAP for thumbs up

Business Decision Making

You are trying to host a fancy gala for work donations. But there is a significant up-front cost, approximately $15,000 for the 300 people who will attend. Your boss is skeptical that hosting an event with such a high cost could be profitable.

You are confident that there is a chance that you could bring in as much as $100,000 in donations. It happens about 5% of the time. Most often, about 45% of the time, these types of events bring in about $75,000 in donations. Even when the event does not go as well, about 30% of the time such events are still able to bring in $15,000. They very rarely bring in less. About 15% of the time, only $5,000 in donations and the rest of the time, they end up not bringing anything.

Calculate the expected value of the event. Show your work and the calculations.

Calculation Formula: EV= (p1x V1) + (p2 x V2) + ... + (pn x Vn)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental Accounting Auditing And Financial Reporting

Authors: Stephen J. Gauthier

1st Edition

0891252754, 978-0891252757

More Books

Students also viewed these Accounting questions