Buchanan corp forecasts the following payoff from a, Ask an Expert

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Buchanan Corp. forecasts the following payoff from a project:

Outcome Probability of Outcome Assumptions
$1,000 50% Pessimistic
$3,000 60% Moderately successful
$6,000 50% Optimistic

What is the expected value of the outcomes?
a) $3,000
b) $3,333
d) The forecast is incorrect and must be modified before finding the expected value.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9866380

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