Question
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)
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