Tuesday, May 20, 2008

Given the information in the following table, what is the expected value from this risk event?

Probability Result

.4 -10,000
.3 -7,500
.2 -5,000
.1 +2,500

a. -10,000.
b. - 7,500.
c. + 2,500.
d. -7,000.

No comments: