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Suppose the management of an FMCG company is contemplating investing in a certain project. Before doing so, it wants to estimate whether it can expect

Suppose the management of an FMCG company is contemplating investing in a certain project. Before doing so, it wants to estimate whether it can expect to make a profit, which will depend heavily on the economic cycle. Based on the opinions of some experts, the following table is created.

Economic Cycle

X (Net Revenue from the Project in Crore )

P(X)

Recession -305 0.1
Stagnancy +15 0.7
Boom +95 0.2

Mean, Variance and Standard Deviation

What is the expected value of the project in crores?

60

-1

415

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